User Behavior in Crowdfunding Platforms -- Exploratory Evidence from Switzerland

Crowdfunding platforms as a new way of financing in the web 2.0 have increased over the last years, but only little is known how users (project initiators and (potential) project backers) behave during a campaign. Using a dataset of 492 projects (including 10'439 donations) published on one of the dominant crowdfunding platforms in Switzerland, we explore the user behavior in crowdfunding. Our results show that the first days of a campaign are crucial. Successful projects generate a significant share of their intended funding goal just in the first days of a campaign. Moreover, the early interaction patterns on the project page initialize social emergent developments like herding effects for the remaining campaign duration. Finally, we show how project initiators can adapt to backer behavior to increase their funding chances.