Abstract

Crowdfunding, a revolutionary emerging channel of entrepreneurial funding, is becoming popular, and it has shown increasing growth in recent years. It is an alternative funding option for entrepreneurs as well as small and medium-sized enterprises. This article analyzes the value propositions of reward-based crowdfunding projects. To understand the contribution of value propositions in this context, we apply the value proposition approach for analyzing contributions to the top five crowdfunding projects from Kickstarter.com, a leading global crowdfunding platform. The results of this study show that successful projects offer multiple value proposition dimensions. The better the project’s value proposition dimensions are clearly stated, the higher the project’s ranking will be. None of the five projects are represented directly in the branding or price dimensions, and only one project is represented in the cost reduction dimension. Conversely, all five projects are represented on the performance, customization, design, and convenience dimensions. The results also provide practical implications for crowdfunding entrepreneurs that may impact their ability to successfully obtain entrepreneurial financing via crowdfunding.