Stretching the success in reward-based crowdfunding

The use of crowdfunding as a funding method has increased considerably over the last decade. However, competition for crowdfunding money is tough, and goal setting is critical for fund seekers. We investigate the impact of initially set stretch goals and the project creators' communication openness on project funding performance. Empirical results based on a large dataset from Kickstarter show that the stretch goals and higher levels of communication openness increase the likelihood of project funding success. Furthermore, communication openness positively moderates the relation between stretch goals and funding success. Moreover, projects with aggressive stretch goals are more likely to succeed if the goals are communicated well. The results provide practical implications for project creators to increase funding performance by communicating openly with the crowd.