Do updates matter? A comparison between rewards-based and donation-based crowdfunding platforms

Abstract

This study conducts a meticulous inquiry into the efficacy of communicative signals, specifically focusing on updates, within the domains of two distinct crowdfunding platforms: rewards-based and donation-based. While rewards-based platforms have received extensive examination in the literature, limited research exists on donation-based platforms. Drawing upon information from Israel’s crowdfunding landscape, this research demonstrates that updates positively impact fundraising success in rewards-based platforms, yet exhibit a negligible influence in donation-based platforms. The study emphasizes the necessity for tailored signaling strategies based on platform type, shedding light on how creators and entrepreneurs can optimize fundraising outcomes.