Negative Visuals Spur Crowdfunding

Crowdfunding videos usually stick to a familiar formula of smiling founders, upbeat energy and optimistic pitches designed to inspire trust. But in a crowded digital space, constant positivity makes it hard for any message to stand out. What if breaking that pattern—by showing frustration, urgency or vulnerability—captures more attention? This raises a compelling question: could negativity rather than positivity be more effective at raising funds? 

Professor Marilyn A. Uy, Professor Foo Maw Der (Nanyang Technological University), and their co-authors conducted a study to examine just this. They looked at whether videos displaying negative emotions, with or without human faces are more effective at attracting funding than positive emotions. They also explored when and how negative emotions should be presented to enhance fundraising. 

Positive v. Negative Emotions 

The study predicted that a higher level of negative emotion might increase potential backers’ attention to a problematic situation presented in a pitch video and motivate them to support the project. Using machine learning tools, the researchers analysed over 3,000 pitch videos on the crowdfunding platform Indiegogo. In crowdfunding campaigns, positive emotions (e.g. joy) could convey entrepreneurs’ confidence in their products and their reasonable progress, while negative emotions (e.g. anger) could signal a problematic situation to make a case for why such a product is needed. Entrepreneurs expressed anger when explaining the seriousness of the problems they addressed. 

‘Business ideas anchored in a pain point or customer problem have a higher chance of funding success, as people feel that their contribution would make an impact,’ said Professor Marilyn. 

Impact of Emotions on Fundraising 

The researchers observed pitch videos, with or without human faces, that evoke negative emotions attract more funding than those evoking positive emotions. They also found negative emotions conveyed by human faces had a stronger impact on fundraising in the first half of the video than in the second half. In contrast, negative emotions expressed without using human faces performed better in the second half of the video. Finally, they discovered negative emotions conveyed by human faces improved funding outcomes. 

Therefore, negative emotions can help fundraising when used strategically. They are most effective when shown through human expressions and not overused throughout the video. If everything in the video is highly negative, the effect becomes weaker, so a balanced mix of positivity and negativity works better than constant negativity. 

Practical Implications 

For entrepreneurs designing crowdfunding pitch videos, the research shows negative emotions can help attract funding but only when used deliberately, so a pitch video’s success depends not just on the type of emotion shown but also on when and how it is presented. Further, emotion is most effective when used with intention rather than intensity. While negative emotions can capture attention and strengthen persuasion, their impact depends on careful placement within the video’s narrative, particularly through human expressions and at key moments in the video. Thus, successful pitches are not simply emotionally expressive but strategically crafted to shape how viewers feel and respond. 

This research paper was published by the Journal of Business Venturing in September 2023.

The article is based on a version published earlier in NTU’s Pushing Frontiers Issue 23.

Marilyn A. Uy is the Provost's Chair in Entrepreneurship and a tenured Associate Professor at the Nanyang Business School, Nanyang Technological University (NTU Singapore). Her research spans the broad areas of psychology of entrepreneurship, work motivation, and emotional well-being. Her articles have been published in premier journals including the Academy of Management Journal, Journal of Applied Psychology, Journal of Business Venturing, Entrepreneurship Theory and Practice, Personnel Psychology, and Organizational Research Methods, among others. She serves on the editorial review boards of Journal of Business Venturing, Entrepreneurship Theory and Practice, and Strategic Entrepreneurship Journal. 

Foo Maw Der is the President's Chair in Entrepreneurship and Professor at Nanyang Business School, Nanyang Technological University. With a keen interest in promoting fair and sustainable business practices, he is on the Consumers Association of Singapore CaseTrust Advisory Council as its Vice-Chair. He is on the editorial review boards of the Academy of Management Journal, Academy of Management Perspectives, ETP, Journal of Management, and Strategic Entrepreneurship Journal.

This research paper is a joint work with the following collaborators: Huang Yi (Tsinghua University), Liu Chang (Meta), and Li Zhuyi (Renmin University).