Understanding the determinants of funders' investment intentions on crowdfunding platforms A trust-based perspective

Purpose - The purpose of this paper is to identify funders' motivations for investing in crowdfunding. It applies trust theory to propose a research model including three subject measures - fundraiser-related, project-related and platform-related factors. Trust has been categorized into cognitive and affective dimensions to specifically analyze the influential factors. Design/methodology/approach - Bootstrapping is employed to analyze data collected from respondents with investment experience on equity crowdfunding projects. Structural equation modeling techniques are adopted to examine the factors that influence trust between funders and crowdfunding as well as the outcomes of this trust. Findings - The results indicate that calculus trust and relationship trust collectively or separately transmit the effect of some antecedents to investment intention. However, there is no evidence indicating the mediating effects of calculus trust and relationship trust on the relationship of structural assurance and value congruence to investment intention. Practical implications - This paper provides insights for crowdfunding fundraisers on how to build a strong relationship with funders, and it also gives crowdfunding designers advice on how to improve and perfect the platform functions. Originality/value - This study contributes to a better understanding of the driving forces of calculus and relationship trust and their influence on investment intention. It is also the first to address a funder's trust using a theoretical model describing the investor intention in crowdfunding and thereby extending the knowledge base of trust theory.