Could Technology Entrepreneurs Rely on Crowdfunding (Kickstarter) As a Source of Finance? The Case of the Netherlands

Abstract

Taking technology-related projects launched from the Netherlands at Kickstarter into account, this study aims to explore the factors influencing crowdfunding success, in terms of funding level. The study shows the significant and positive influence of number of project backers (investors) on funding level. Besides, the significant and positive influence of factors connected to level of preparation of entrepreneurs, namely, number of updates and images posted by entrepreneurs, the length of project description and including a video on a project webpage, on funding level is found. As the study differentiates between level of preparation (quality) of entrepreneurs and network, the results emphasize on more crucial role of network size compared to level of preparation of entrepreneurs in raising money. Some recommendations for technology entrepreneurs who want to benefit from crowdfunding and future research paths are provided at the end.