A New Flow of Money Toward Social Issues: From Analysis of Japanese Social Crowdfunding Platform

Abstract

As a supplementary mechanism that goes beyond the limits of conventional financial systems, crowdfunding platforms, such as Kickstarter and Indiegogo, have become important funding sources. Crowdfunding enables the generation of funds for business ventures that find traditional profit-based means difficult (Bruton et al., 2015; Davis et al., 2017; Moss et al., 2015). Typical examples are social businesses that address public issues. In crowdfunding, even traditionally hard-to-fund projects such as environmental protection, heritage preservation, welfare for the disabled, and disaster recovery, can be funded by people who agree with their activities. On crowdfunding platforms, money is moved according to a logic that differs from conventional financial systems. Previous studies have revealed the differences between conventional investment and crowdfunding (Allison et 4/, 2015; Belleflamme ez al., 2014; Cholakova & Clarysse, 2015; Mollick, 2014). A notable feature of crowdfunding platforms is that projects with prosocial orientations are likely to be supported (Allison ez af., 2013; Gorbatai & Nelson, 2015; Pietraszkiewicz et al., 2017). The prosocial orientation of a business refers to its attempt to solve issues related to social welfare through commercial activities (Yunus, 2009). The prosocial orientation of projects in crowdfunding is preferred because the investment motive in crowdfunding is based on altruism, whereas the conventional investment motive is based on self-interest (Allison et al, 2015; Belleflamme ez af., 2014; Cholakova & Clarysse, 2015). In line with this thought, previous studies have pointed out that linguistic expressions of prosocial orientation in campaigns have a significant impact on the success of funding. For example, words indicating virtuous orientation (Moss et al., 2015), altruism (Pictraszkiewicz et al., 2017), and political rhetoric such as accomplishment rhetoric and blame rhetoric (Allison et 4l., 2013), have been reported to foster the success of fundraising.