Comparing Crowdfunding Theory and Practice: The Case of Technology Firms in England

Anton Miglo

MPRA Paper from University Library of Munich, Germany

Abstract: This article analyzes crowdfunding campaigns of technology firms in England. We compare the predictions of crowdfunding theories with empirical evidence. We are particularly focused on factors of campaign success related to indirect signalling (such as the choice of campaign target) by founders that have mixed evidence in existing research as opposed to direct signalling (eg. the number of updates by founders). We have found that the campaign target has U-shape effect on success of campaign. For example, the probability of success increases if the threshold value is neither very small or significantly large. This is consistent with the spirit of some theoretical research on crowdfunding. We also provide an overview of literature related to informational problems in crowdfunding, highlight gaps and controversial areas and provide some suggestions for future research.

Keywords: crowdfunding; reward-based crowdfunding; crowdfunding in technology sector; digital entrepreneurship; information asymmetry; signalling; factors of crowdfunding success; campaign target (search for similar items in EconPapers)
JEL-codes: G32 M21 O33 (search for similar items in EconPapers)
Date: 2022-01
New Economics Papers: this item is included in nep-cfn, nep-cse, nep-ent and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:111349

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