The Role of Entrepreneur’s Face Disclosure on Crowdfunding Success

Abstract

The evaluation of crowdfunding campaigns varies from person to person; some investors are more interested in the creativity of the project, and others are more concerned with the profiles of entrepreneurs. The study investigated how entrepreneurs’ face disclosure influenced the success of crowdfunding. Secondary data was collected from multiple crowdfunding platforms for projects in Africa, that is, cross-country data from 54 African countries, to overcome data limitations from a single country. Econometrics analysis revealed that the facial disclosure of entrepreneurs increases the probability of crowdfunding success. Images, videos, and backers had a positive influence on the success of crowdfunding. On the contrary, the duration of the crowdfunding campaign was negatively associated with its success. To reduce the knowledge asymmetry between creators and backers, those prepared to start a crowdfunding project must provide as much information as possible to show their abilities. This study contributes to understanding the role of disclosing an entrepreneur’s profile on economic exchanges in the success of online crowdfunding. The signalling and agency theories support the finding. The findings were limited to crowdfunding projects on the African continent and are not necessarily applicable to some developed countries.