Online feedback and crowdfunding finance in China

摘要

This study examines the impact of online feedback on the extent of alternative startups' fundraising success or failure through reward-based online crowdfunding platforms. By drawing on regulatory focus theory, we theorize that online feedback relating to products or services is crucial in determining the success of entrepreneurial projects. While employing a unique dataset of 620 projects from renowned reward-based Chinese crowdfunding platform "Demohour" (a major pioneer Chinese crowdfunding platform), the findings show a significant effect of online feedback on the extent of success or failure of reward-based crowdfunding campaigns. Our findings, which are robust to different measures and methodologies imply that nascent entrepreneurs need to pay keen attention to online feedback about their innovative projects if they are to be successful in their fundraising efforts.