Signalling Strategy and Success of Crowdfunding Campaign

Improving the funding results of crowdfunding campaigns is a pivotal point for entrepreneurs, investors, and platforms. Building upon previous research in the field of crowdfunding and signaling theory, we propose a logistic regression to identify the determinants of the success of 5228 KissKissBankBank crowdfunding. The main focus is on estimating the role of signalling opportunities provided to project initiators and funders in mitigating the harmful consequences of asymmetric information. Our main results reveal that, as expected, the success of crowdfunding campaigns is promoted by the signal of identity, patience, pointing, reciprocity, intention and interactivity. The ambition signal is a factor that hinders funding success. Contrary to our research hypotheses, the signal of reputation and social capital has a negative impact on the probability of crowdfunding projects' success. The findings provide not only empirical evidence to understanding the importance of the role of signals in determining the success of crowdfunding campaigns but also useful tools for stakeholders in developing their own crowdfunding strategies at an early stage.