EFFECT OF SOCIAL MEDIA ON CROWDFUNDING PROJECT RESULTS

Crowdfunding is a form of collaborative social media. Even though crowdfunding can function without social media, this phenomenon has developed greatly with the advance of social media. The studies in entrepreneurship and finance established connections between startup projects and social ties. However, the impact of social media on crowdfunding is still lightly studied in academic literature. The purpose of this thesis is to define the influence of social media on crowdfunding. In particular, this research studies the connections between social media assets such as the social media followers and the social media seals of approval and crowdfunding results such as the delivery of the funding target, the fundraising total, and the number of backers. In course of the research, data on the hundred crowdfunding projects on the Kickstarter site were collected. Collected data established a number of statistically relevant connections, including the connection between the social media seals of approval and the delivery of fundraising target, the connection between the social media seals of approval and the fundraising total, the connection between the social media seals of approval and the number of backers, and also the connection between the number of social media followers and the social media seals of approval. The value of this research is that it explores the underlying mechanism of social media influence on crowdfunding results and helps individuals and businesses involved in crowdfunding projects identify factors of success and predict results for their projects. iii ACKNOWLEDGEMENTS I would like to express sincere appreciation to several people who contributed to this study. Frist of all, I would like to thank Dr. James W. Gentry for introducing me into the world of marketing science. It is a great difference from what I was when I entered the UNL and what I have become over my course of studies and especially over time I worked on my thesis. I also would like to thank Tim Reilly for his help with my research. His insights were very valuable and enriched my analysis in many ways. A special note of thanks to Jason Rubbert for his help with statistical analysis and interpretation of the results. He was very patient to me and was interested in my research. Special gratitude to my wife, Alyona, who took a major share of hardships over time of studies and my mother. Lyudmila, who supported me in all so I could completed my studies. Final …