Reward-based crowdfunding has been used for a wide range of purposes, including motion picture promotion (indiatimes.com/ 
), free software development, inventions development, scientific research (scienceexchange.com ) and civic projects (academia.edu ).
For a joint study between York University, Toronto, Ontario, and Universite Lille Nord de France, in Lille, France, published on June 2, 2014, two types of reward-based crowdfunding were identified - ssrn.com
* Keep It All Crowdfunding where the entrepreneurial firm sets a fundraising goal and keeps the entire amount raised regardless of whether or not they meet their goal, and
* All Or Nothing Crowdfunding where the entrepreneurial firm sets a fundraising goal and keeps nothing unless the goal is achieved
The study's researchers analyzed 22,875 crowdfunding campaigns, with targets of between US$5,000 and US$200,000, and concluded: "Overall, [all-or-nothing] fundraising campaigns involved substantially larger capital goals, and were much more likely to be successful at achieving their goals." - wikipedia
In its review of the study outcomes, the ''Inc.com'' publication explained that potential investors are more inclined to support "all-or-nothing strategy" initiatives, whereby a substandard product will not be released if the funding goal is not achieved. The ''Inc.com'' review concluded that "AON" projects typically provide more detailed information on the campaign - inc.com
There are many characteristics of rewards-based crowdfunding, also called non-equity crowdfunding, identified by research studies. In rewards-based crowdfunding, funding does not rely on location. The distance between creators and investors on Sellaband was about 3,000 miles when the platform introduced royalty sharing.
The funding for these projects is distributed unevenly, with a few projects accounting for the majority of overall funding. Additionally, funding increases as a project nears its goal, encouraging what is called "herding behavior."
Research also shows that friends and family account for a large, or even majority, portion of early fundraising. This capital may encourage subsequent funders to invest in the project.
While funding does not depend on location, observation shows that funding is largely tied to the locations of traditional financing options. In reward-based crowdfunding, funders are often too hopeful about project returns and must revise expectations when returns are not met.