The power of entrepreneurs’ image disclosure in crowdfunding success

Abstract

The objective of this study was to investigate the influence of entrepreneurs’ facial disclosure on crowdfunding success. It emphasises examining how an entrepreneur’s image disclosure and display influence crowdfunding outcomes, to understand the complex factors that lead to successful or unsuccessful venture capital financing. We employed econometric analysis to develop a comprehensive index of an individual’s facial reliability, drawing on data from Kickstarter, IndieGoGo, and fundraised crowdfunding platforms. The econometric analysis revealed that disclosure of the entrepreneur's face is positively correlated with crowdfunding success. Frequently asked questions, social networks, and backers were positively associated with crowdfunding success. A similarly targeted amount was found to negatively affect crowdfunding success. Providing the face and personality of the business to potential sponsors goes beyond just showing a product or idea; it also creates a connection with people. These personal touches are crucial factors in persuading people to contribute to a cause. It is advisable for entrepreneurs to intentionally use relatable, authentic images in their crowdfunding campaigns. The study's findings were limited to crowdfunding projects on Kickstarter, Indiegogo, and fundraised platforms; therefore, they cannot be generalized to other crowdfunding platforms.