Dazzled to Invest : Are the funding masses falling for effects?

Abstract: The issue investigated is the nature of reward-based crowdfunding being too influenced by visual media and the creator’s personalities rather than focusing on the creator’s ability to run a business and the business plan. Through Source Credibility Theory three sets of categories for the studied variables were developed in addition to one category concerning external actors. The variables aim to measure the visual elements, the honesty and personal credibility of the creator as well as the business plan. A sample of 150 campaigns was picked from the platform Kickstarter, which consisted of half successful and half failed campaigns. Each campaign was observed individually and the communicated elements were recorded and compiled for analysis. The variables were recorded as binary or continuous and were tested through chi-square, regression and correlation tests. The study concludes that some business plan variables are often communicated for both failed and successful projects, however rarely in detail. The campaigns are often utilising visual elements but the honesty and personal credibility of the creator is not as common. Generally the successful campaigns are communicating all variables to a greater extent than the failed projects.