A multi-method study of social ties and crowdfunding success: Opening the black box to get the cash inside

Abstract

We conducted one field experiment and three controlled experiments to explore how to increase crowdfunding success, focusing on the relationship between individuals soliciting funds and potential contributors. Specifically, we examined how social closeness, contact frequency and trust influenced contribution likelihood and investigated the mediating effects of obligation, fear of loss of relationship and happiness. Finally, we tested whether requesting higher contribution amounts increased the average dollars contributed. We found that closeness and frequency, but not trust, increased the contribution likelihood and that feelings of obligation and the fear of loss, but not happiness, mediated the relationship. Requesting higher contribution amounts increased a person's average contribution.