Tag Archives: Crowdfunding Research Study

New Crowdfunding Research Firm Wants to Shine Light on Best Practices for Shooting the Perfect Indiegogo/Kickstarter Crowdfunding Pitch Video

14 Aug

In their new research study, Understanding the Effectiveness of the Pitch Video:  A Crowdfunding Research Study, the team plans to measure the effectiveness of crowdfunding pitch videos and their impact on online fundraising

 By Robert Hoskins

Sydney Australia – What type of pitch video helps crowdfunding campaigns achieve success or lead to their failure? That’s what the folks at DigitalMindWorx want to research and document.  In their new research study, Understanding the Effectiveness of the Pitch Video:  A Crowdfunding Research Study,  the team plans to measure the effectiveness of crowdfunding pitch videos and their impact on online fundraising. Conducted by Jess Milne, a Masters student at the Australian Film Television and Radio School in Sydney, the upcoming research study will use an online survey to collect quantitative data that will help inform future creators on how to how to make a compelling pitch video based on past Kickstarter and Indiegogo success/failure rates.

Understanding the effectiveness of the pitch video:  A Crowdfunding Research Study

Understanding the effectiveness of the pitch video: A Crowdfunding Research Study

“There is very little research in the crowdfunding arena,” said Jess Milne Masters, a film student. “The pitch video is the most persuasive tool available to crowdfunders I think more research insights are required to help crowdfunders make better and more effective videos.”

According to some sources,  such as the Indiegogo Playbook, including a video with a crowdfunding campaign to demo the product and explain the project can increase fundraising by 115%.

Kickstarter, another popular crowdfunding platform, reported that campaigns with a pitch video succeed at a much higher rate than others (50% vs 30%).

Last, but not least, MWPDigitaMmedia, a professional video production company, reports that projects that have a good crowdfunding pitch video are 85% more likely to achieve their fundraising goal.

“The aim of our research is to relate how the pitch video in a crowdfunding campaign can incite affective and emotional responses in the viewer and ultimately influence the decision to pledge to the campaign,” Masters continued.

With an estimated 49,000 launched projects in 2013 on Kickstarter alone, this research has the opportunity to make a big impact for entrepreneurs and creative types. After data has been collected the unbiased conclusions will be released in a guidebook for filmmakers and other individuals who want to lean how to create a compelling crowdfunding pitch video.

As an incentive all participants of the study will have the chance to win a 200 iTunes voucher after completing the research survey. Click here to participate in the Crowdfunding Pitch Video Research Study, which will be open to all participants until October 1, 2014.

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New NYU Stern Crowdfunding Research Study Provides Insight into Crowdfunding Behavior and Successful Crowdfunding Strategies

9 May

An Empirical Examination of the Antecedents and Consequences of Contribution Patterns in Crowd-Funded Markets

By Robert Hoskins

Kickstarter and IndieGoGo have become thriving, efficient markets for firms and ventures to raise new capital for and awareness around projects. 2013 estimates for crowdfunding top $5.1 billion, an 89% increase from 2012, and millions of projects big and small have benefitted from crowdfunding campaigns.

An Empirical Examination of the Antecedents and Consequences of Contribution Patterns in Crowd-Funded Markets

An Empirical Examination of the Antecedents and Consequences of Contribution Patterns in Crowd-Funded Markets

In new research forthcoming in Information Systems Research, Anindya Ghose, NYU Stern Associate Professor of Information, Operations and Management Sciences and co-Director of the Center for Business Analytics, with Gordon Burtch at the University of Minnesota Carlson School of Management and Sunil Wattal at Temple University’s Fox School of Business, quantifies how donors influence each other in the crowdfunding process, and finds that quick fundraising, while seemingly desirable, can have downsides.

The authors study a crowdfunding market that supports journalists who raise money to research and write stories for online publication and find that:

  • A longer fundraising campaign increases a project’s future demand: Projects that take twice as long to meet their fundraising target experience, on average, a 22% increase in demand after the project is completed (in this case, published articles draw more readers), because they have more time to build online word of mouth.
  • Rapid success with crowdfunding will jeopardize the end goal: When fundraising goals are achieved very quickly, donations on the following day decline by 32%, on average.
  • To give is to receive: In this specific market which is donation-based and deals with publicly-available online journalism (and can be viewed as a public good), the findings suggest that altruism is a key incentive to contribute.

Professor Anindya Ghose is an expert in the economic impact of social media, digital marketing, crowdfunding, internet commerce and mobile advertising. Read the full paper, “An Empirical Examination of the Antecedents and Consequences of Contribution Patterns in Crowd-Funded Markets,” on the Social Science Research Network.

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Leading Research Study Shows America’s Crowdfunding Industry Soared at an Amazing 105% Growth Rate in 2012

9 Apr

By Robert Hoskins

Crowdfunding is accelerating at an unprecedented rate and impacting government policy, informing enterprise innovation, and changing the role of financial institutions around the world. Today, massolution, a research firm specializing in the crowdsourcing and crowdfunding industries, released its annual 2013CF – Crowdfunding Industry Report.

Massolutions Crorwdfunding Research Study Reports that America's Crowdfunding Industry Grew a Whopping 105% in 2012

Massolutions Crorwdfunding Research Study Reports that America’s Crowdfunding Industry Grew a Whopping 105% in 2012

After collecting data from 308 active crowdfunding platforms (CFPs) worldwide and undertaking significant further research, the results reveal that CFPs raised $2.7 billion in 2012 – an 81% increase over 2011 – and successfully funded more than one million campaigns. North America and Europe account for over 95% of the total market.

“Consistent with our 2012 forecast, total crowdfunding volume nearly doubled last year, and with regulatory bodies continuing to pave the way, we expect global crowdfunding volumes to exceed $5 billion in 2013,” said CEO of massolution, Carl Esposti . “While lending-, donation-, and reward-based crowdfunding have thus far been leading this global financial revolution, equity-based crowdfunding is about to take center stage in the U.S. The JOBS Act, which will allow non-accredited investors to make investments in exchange for equity, is expected to go into effect by the end of 2013.”

Growth Rates By Region

Although crowdfunding offers a growing number of countries opportunities to access funds, North America and Europe raised much more capital than platforms in other regions.

  • North America: crowdfunding volumes grew 105% to $1.6 billion
  • Europe: crowdfunding volumes grew 65% to $945 million
  • In total, all other markets grew close to 125%

Growth Rates By Models

The growth in funding volumes was primarily driven by lending- and donation-based crowdfunding, and by SME adoption of reward-based crowdfunding. The growth in lending volumes mainly stemmed from crowdfunded micro-loans and community-driven loans to local SMEs.

  • Donation- and Reward-based crowdfunding grew 85% to $1.4 billion
  • Lending-based crowdfunding grew 111% to $1.2 billion
  • Equity-based crowdfunding grew 30% to $116 million

Most Active Categories

Crowdfunding first gained popularity as a way to fund creative, philanthropic, and social endeavors. This popularity prevails, but crowdfunding’s application for entrepreneurial ventures has also gained traction. Driven by models that offer financial return, the ‘Business/Entrepreneurship’ and ‘Energy/Environment’ categories are the next highest performing categories.

  • Social Causes are most active, driving close to 30% of all crowdfunding activity
  • Business & Entrepreneurship (16.9%), and the two major Art Categories follow: Films & Performing Arts (11.9%) and Music & Recording Arts (7.5%)
  • Energy & Environment (5.9%) is the emerging category among the five most active

“Obtaining reliable and analyzable data on all aspects regarding new constituents- and market-related activity will be critical to the creation of the new crowdfunding industry,” said EGS Managing Partner, Douglas Ellenoff . “This includes more research on funding platforms, deals, investors, amounts being raised, actually raised, industries, and geographies. For the last several years, massolution has committed itself to developing these necessary capabilities, relationships and infrastructure to be the best positioned and most reliable market leader for this purpose.”

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How Crowdfund Investing Helps Solve Three Socioeconomic Challenges

21 Dec

How Crowdfund Investing Helps
Solve Three Pressing Socioeconomic Challenges

History of the U.S. Crowdfunding Industry

Looking for information on the evolution of the crowdfunding industry in the United States?  The Crowdfund Capital Advisors was formed by the principal parties that worked the United States Congress to solve one America’s biggest problems, raising venture capital for small businesses.  Without a source of start-up capital hundreds of thousands of Americans with great business ideas will never get off the ground.  That means very few new jobs will be created.

The U.S. Jobs Act 2012

The JOBS Act was signed into law by President Obama on April 5, 2012.  And as soon as the SEC issues the final regulatory guidelines by which all crowdfunding platforms must abide, 98% more unaccredited Americans will be able to invest up to $2,000 per year in their favorite start-up companies.  The other 2% of accredited investors will be able to invest an unlimited amount.

$300 Billion Private Stimulus Package

Why is that important? If Americans invest just 1% of their savings via crowdfund investing, this policy change will deliver over $300 billion to the small businesses, which will stimulate entrepreneurship, innovation and job creation.  These results are achieved without any US government spending, which means taxpayers won’t have to foot the bill.  More importantly, instead of the U.S. Government steering America, the citizens will decide where to put their hard-earned dollars to work.  Not just to help out their favorite businesses, but to do what Americans do best; make money.

Jump Starting America’s Economy

And when people start pooling their money together to give start-ups the venture capital small business needed to get started, hundreds of thousands of them are going to open up shop, rent office space, buy office supplies, buy a fleet of cars and the tools their workers will need to do their work and, of course, they are going to hire lots of the new people to help them run their business.  And when all those new workers start making money, what will they do with it? Spend of course and that is going inject lots of money back into the economy and jump start America’s economy.

Read the Crowdfunding Research Report

This is just a prelude to what is inside this research report. We highly recommend you read the full history of the pioneers of the crowdfunding industry and why both side of Congress agreed and made this one of fastest bills every pushed through Congress.

Click to download a copy.

How Crowdfunding Helps Solve Three Pressing Socioeconomic Challenges

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