By using information technology, local governments can develop alternative forms of citizen engagement. Civic crowdfunding campaigns supported by online platforms enable citizens to participate financially in social projects and can be matched with government funding. As such, an alternative for subsidies seems to be developing. In this paper, we assess empirically the success of civic crowdfunding campaigns in the Netherlands by using data collected during 2018 from 269 civic crowdfunding projects and local demographic data from the neighborhoods of these projects. The factors—the use of match-funding, the target amount of money, and the theme of the project, as well as the age structure, the province, and the degree of urbanization of the neighborhood of the civic crowdfunding project—turn out to be empirically related to the success of a civic crowdfunding campaign.
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Crowdfunding is gaining popularity as a viable means to raise financial capital for good causes, cultural goods, new products, and ventures. Little empirical research has been done to understand crowdfunding and basic academic knowledge of its dynamics is still lacking. By data mining the crowdfunding platform Kickstarter.com and Facebook we collected a large dataset of crowdfunding projects and the ego networks of the entrepreneurs. We study the relation of the success of the Kickstarter project to his social network and to media activities and find a scaling law that predicts the number of clicks on the project website required for a successful project. Examining the results of the social network analysis we concluded that successful initiators on Kickstarter have more friends but a sparser network. Unsuccessful entrepreneurs on the other hand have a higher average degree suggesting a denser network. Our analyses suggest that sparse, and thus diverse networks are beneficial for the success of a project.
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