Crowdfunding: Determinants of success and funding dynamics

Over the past years crowdfunding emerged as an alternative funding channel for entrepreneurs. In contrast to traditional financiers (banks, venture capital firms or angel investors), crowdfunding allows individuals to fund entrepreneurs directly even with small amounts. We received individual level data from Startnext, the biggest crowdfunding platform in Germany, enabling us to investigate funding dynamics, explore pledgers’ motivations and analyze projects’ success determinants.