This study conducts a meticulous inquiry into the efficacy of communicative signals, specifically focusing on updates, within the domains of two distinct crowdfunding platforms: rewards-based and donation-based. While rewards-based platforms have received extensive examination in the literature, limited research exists on donation-based platforms. Drawing upon information from Israel’s crowdfunding landscape, this research demonstrates that updates positively impact fundraising success in rewards-based platforms, yet exhibit a negligible influence in donation-based platforms. The study emphasizes the necessity for tailored signaling strategies based on platform type, shedding light on how creators and entrepreneurs can optimize fundraising outcomes.
AhlersGKCummingDGüntherC, et al. (2015) Signaling in equity crowdfunding. Entrepreneurship Theory and Practice39(4): 955–980.
2.
AntonenkoPDLeeBRKleinhekselAJ (2014) Trends in the crowdfunding of educational technology startups. TechTrends58: 36–41.
3.
BagheriAChitsazanHEbrahimiA (2019) Crowdfunding motivations: a focus on donors’ perspectives. Technological Forecasting and Social Change146: 218–232.
4.
BaoLWangZZhaoH (2022) Who said what: mining semantic features for success prediction in reward-based crowdfunding. Electronic Commerce Research and Applications53: 101156.
5.
BlockJHornufLMoritzA (2018) Which updates during an equity crowdfunding campaign increase crowd participation?Small Business Economics50: 3–27.
6.
BretschneiderUKnaubKWieckE (2014) Motivations for crowdfunding: what drives the crowd to invest in start-ups?22nd European Conference on Information Systems (ECIS 2014). Tel Aviv, Israel.
7.
BurtchGGhoseAWattalS (2014) Cultural differences and geography as determinants of online prosocial lending. MIS Quarterly38(3): 773–794.
8.
ButticèVColomboMGWrightM (2017) Serial crowdfunding, social capital, and project success. Entrepreneurship Theory and Practice41(2): 183–207.
9.
ChandlerJAFanGPayneGT (2022) Working the crowd: leveraging podcasts to enhance crowdfunding success. Business Horizons65(1): 79–88.
10.
CheongCWLeeMHWeissmannMA (2020) Credit access, tax structure and the performance of Malaysian manufacturing SMEs. International Journal of Managerial Finance16(4): 433–454.
11.
ChoyKSchlagweinD (2015) IT affordances and donor motivations in charitable crowdfunding: the “Earthship Kapita” case. In 23rd European conference on information systems (ECIS).
12.
ClaussTBreiteneckerRJKrausS, et al. (2018) Directing the wisdom of the crowd: the importance of social interaction among founders and the crowd during crowdfunding campaigns. Economics of Innovation and New Technology27(8): 709–729.
CohenBDDeanTJ (2005) Information asymmetry and investor valuation of IPOs: top management team legitimacy as a capital market signal. Strategic Management Journal26(7): 683–690.
15.
CollinsLPierrakisY (2012) The venture crowd: crowdfunding equity investments into business. London: Nesta. Working Paper R2/2011.
16.
ColomboMGFranzoniCRossi–LamastraC (2015) Internal social capital and the attraction of early contributions in crowdfunding. Entrepreneurship Theory and Practice39(1): 75–100.
17.
Crowdfunding market report (2022) Crowdfunding market size, share & trends analysis report by type (Equity-based, debt-based) by application (food & beverage, technology, media, healthcare, real estate), by region, and segment forecasts, 2023–2030. Available at: https://www.grandviewresearch.com/industry-analysis/crowdfunding-market-report
18.
CummingDJLeboeufGSchwienbacherA2020Crowdfunding models: keep-it-all versus all-or-nothing. Financial Management49 (2): 331–360.
19.
DehdashtiYNaminARatchfordBT, et al. (2022) The unanticipated dynamics of promoting crowdfunding donation campaigns on social media. Journal of Interactive Marketing57(1): 1–17.
GompersPKovnerALernerJ, et al. (2010) Performance persistence in entrepreneurship. Journal of Financial Economics96(1): 18–32.
25.
GorczycaMHartmanRL (2017) The new face of philanthropy: the role of intrinsic motivation in millennials’ attitudes and intent to donate to charitable organizations. Journal of Nonprofit & Public Sector Marketing29(4): 415–433.
26.
HarelSSolodohaERosenzweigS (2022) Can entrepreneurs who experienced business closure bring their new start-up to a successful M&A?Journal of Risk and Financial Management, 15(9), 386.
IsmailA (2006) Is economic value added more associated with stock return than accounting earnings? The UK evidence. International Journal of Managerial Finance2(4): 343–353.
KhuranaI2021. Legitimacy and reciprocal altruism in donation-based crowdfunding: evidence from India. Journal of Risk and Financial Management, 14(5), 194.
34.
KimSKangCEngelR (2022) What convinces donors? An analysis of donation-based crowdfunding projects from nonprofit charities: the case of South Korea. Nonprofit Management and Leadership32(4): 627–649.
35.
KleemannFGünterGRiederK (2008) Un(der)paid Innovators: the commercial utilization of consumer work through crowdsourcing. Science, Technology & Innovation Studies4(1): 5–26.
36.
KleinertSVolkmannCGrünhagenM (2020) Third-party signals in equity crowdfunding: the role of prior financing. Small Business Economics54: 341–365.
37.
KromidhaERobsonP (2016) Social identity and signalling success factors in online crowdfunding. Entrepreneurship & Regional Development28(9–10): 605–629.
38.
KunzMMBretschneiderUErlerM, et al. (2017) An empirical investigation of signaling in reward-based crowdfunding. Electronic Commerce Research17(3): 425–461.
39.
KuppuswamyVBayusBL (2018) Crowdfunding creative ideas: the dynamics of project backers. In: The Economics of Crowdfunding. Cham: Palgrave Macmillan, 151–182.
40.
LeboeufGSchwienbacherA2018. Crowdfunding as a new financing tool. In: The economics of crowdfunding. Cham: Palgrave Macmillan, 11–28.
41.
LiYLiGFengT (2015) Effects of suppliers’ trust and commitment on customer involvement. Industrial Management & Data Systems115(6): 1041–1066.
42.
LiJJChenXPKothaS, et al. (2017) Catching fire and spreading it: a glimpse into displayed entrepreneurial passion in crowdfunding campaigns. Journal of Applied Psychology102(7): 1075.
43.
LiuSChengTWangH (2020) Effects of attention and reliability on the performance of online medical crowdfunding projects: the moderating role of target amount. Journal of Management Science and Engineering5(3): 162–171.
44.
LukkarinenATeichJEWalleniusH, et al. (2016) Success drivers of online equity crowdfunding campaigns. Decision Support Systems87: 26–38.
45.
MollickE (2014) The dynamics of crowdfunding: an exploratory study. Journal of Business Venturing29(1): 1–16. .
46.
PolzinFToxopeusHStamE (2018) The wisdom of the crowd in funding: information heterogeneity and social networks of crowdfunders. Small Business Economics50(2): 251–273.
47.
RaoRSChandyRKPrabhuJC (2008) The fruits of legitimacy: why some new ventures gain more from innovation than others. Journal of Marketing72(4): 58–75.
48.
RijantoA (2018) Donation-based crowdfunding as corporate social responsibility activities and financing. Journal of General Management43(2): 79–88.
49.
RoundyPT (2022) Technology rewind: the emergence of the analog entrepreneurial ecosystem. Journal of General Management47(2): 111–125.
50.
ShanYGXuL (2012) Bad debt provisions of financial institutions: dilemma of China’s corporate governance regime. International Journal of Managerial Finance8: 344–364.
51.
ShneorRZhaoLFlåtenBT (2020) Advances in crowdfunding: research and practice. New York, NY: Springer Nature, 531.
52.
SnyderJMathersACrooksVA (2016) Fund my treatment!: a call for ethics-focused social science research into the use of crowdfunding for medical care. Social Science & Medicine169: 27–30.
53.
SolodohaERosenzweigSHarelS (2023) Incentivizing angels to invest in start-ups: evidence from a natural experiment. Research Policy52(1): 104634.
54.
SongYBergerRYosipofA, et al. (2019) Mining and investigating the factors influencing crowdfunding success. Technological Forecasting and Social Change148: 119723.
VismaraS (2016) Equity retention and social network theory in equity crowdfunding. Small Business Economics46(4): 579–590.
57.
ZhangHChenW (2019) Backer motivation in crowdfunding new product ideas: is it about you or is it about me?Journal of Product Innovation Management36(2): 241–262.
58.
ZhouHYeS (2019) Legitimacy, worthiness, and social network: an empirical study of the key factors influencing crowdfunding outcomes for nonprofit projects. Voluntas: International Journal of Voluntary and Nonprofit Organizations30(4): 849–864.
