Commercial or relational cues: how information salience in project titles affects crowdfunding performance

Abstract

Scholars have paid considerable attention to factors that could influence crowdfunding performance. However, whether or how the salience of information in project titles may affect crowdfunding performance remains unknown. To address this research gap, we examine 2,064 startups that sought funding on the Kaishiba crowdfunding platform. We find that market validation information in a project title is positively correlated with crowdfunding performance, whereas low psychological distance information is negatively associated with crowdfunding performance. We reveal that the influence of project title information on crowdfunding performance is moderated by the gender of entrepreneurs. Specifically, projects will more (less) likely be funded when entrepreneurs provide information that is congruent (incongruent) with stereotypes associated with their gender. Our findings contribute to the crowdfunding literature by introducing the salience of project title information as a factor that can influence crowdfunding performance while providing practical insights for entrepreneurs, policymakers, and investors.