THE RHETORIC OF CROWDFUNDING: A SOCIAL MOVEMENT FRAMING PERSPECTIVE

Abstract

Crowdfunding has emerged as a popular funding option for entrepreneurs who cannot or choose not to raise funds through traditional venture funding channels. Drawing from research on social movements, this dissertation examines how the rhetoric used in crowdfunding investment narratives influences the likelihood of receiving funds from individual investors. Specifically, I draw from frame theory to examine how the use of rhetoric associated with diagnostic, prognostic, and motivational framing influence the performance of crowdfunding campaigns. I also draw from the literature on frame resonance to examine the effect of industry rhetoric on the efficacy of framing rhetoric. Frame theory suggests that explicitly identifying the problem and solution, using rhetoric that conveys the urgency and severity of the problem, and conveying the efficacy of both the individual investors and the campaign, will lead to improved crowdfunding performance. Frame theory also suggests that the use of industry rhetoric and adversarial rhetoric will moderate the effects of framing rhetoric on crowdfunding performance. The findings indicate that problem, solution, and efficacy rhetoric each positively influence crowdfunding performance, but that linking, severity and urgency rhetoric do not. The findings do not support the moderating role of industry or adversarial rhetoric on the efficacy of framing rhetoric.