Prioritise reach over contribution size: On the drivers of market entry after crowdfunding campaign success

Purpose: Reward-based crowdfunding literature often places disproportionate emphasis on the campaign stage, which focuses on engaging potential backers and securing financial contributions. Our research extends this analysis to the post-campaign stage, examining how campaign outcomes influence market entry. By linking campaign characteristics to market entry, we aim to enhance the understanding of what constitutes overall success in the crowdfunding process.
Study design: We analyse the market entry phase of products from 335 successfully funded projects on Kickstarter, defining market entry as 'the product's availability for sale online'. Data collection involved two main steps: gathering campaign information and determining market entry. Campaign data were collected from Kickstarter, focusing on high-tech gadgets funded between 2012 and 2023. Market entry data were obtained through a four-step online search to ensure comprehensive coverage. We then linked market entry outcomes to various campaign characteristics, such as funding amount, number of contributors, and campaign duration.
Findings: Our analysis reveals that 43% of the projects entered the market after completing the campaign stage. We found that the number of contributors is a significant factor associated with market entry, whereas the average contribution amount is not.
Contributions: This research underscores the importance of attracting a broad base of supporters for successful market entry, challenging the assumption that a small but dedicated group of contributors is sufficient.
Implications: We clarify the distinction between 'campaign success' and 'crowdfunding success,' emphasising that the former represents only one component of the latter.