Determinants of Campaign Success: Empirical evidence from equity crowdfunding in Japan

Author Name KURIHARA Koki (Chuo University) / HONJO Yuji (Faculty Fellow, RIETI)
Creation Date/NO. June 2022 22-E-057
Research Project Developing an Entrepreneurial Ecosystem
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This study investigates campaign success in equity crowdfunding, using campaigns listed on a leading Japanese equity crowdfunding platform. We examine how success depends on campaign- and firm-specific characteristics, including the campaign target amount. We provide evidence that campaigns launched by venture capital-backed firms are more likely to succeed than others. We also find that patenting has a positive effect on campaign success, as well as on the campaign target amount. Moreover, campaigns that have already provided services or products have a lower probability of success, although not always, and tend to set a lower target amount. Furthermore, campaigns launched by firms eligible for the Angel Tax System, introduced in Japan as a tax incentive for investment in young and small firms, have a higher tendency to succeed in equity crowdfunding.

Forthcoming: Honjo, Yuji, and Koki Kurihara. "Target for campaign success: An empirical analysis of equity crowdfunding in Japan," The Journal of Technology Transfer.