Skip to main content

Towards New Framework for Modelling Project Selection in Crowdfunding Platforms

  • 246 Accesses

Part of the Advances in Intelligent Systems and Computing book series (AISC,volume 1418)

Abstract

Crowdfunding is a form of public funding via the internet to the entrepreneurs. The crowdfunding covers various models that range from simple donations to risky investments. The aim of this paper is to introduce a new framework for modeling project selection in crowdfunding platform using two artificial intelligence approaches: fuzzy logic and agent-based simulation. We propose a new model based on both donation and interest-free lending and we compare its performance with a pure donation.

Keywords

  • Agent based modelling and simulation
  • Fuzzy logic
  • Donation based crowdfunding
  • NetLogo

This is a preview of subscription content, access via your institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1007/978-3-030-90639-9_59
  • Chapter length: 8 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   189.00
Price excludes VAT (USA)
  • ISBN: 978-3-030-90639-9
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book
USD   249.99
Price excludes VAT (USA)
Fig. 1.
Fig. 2.
Fig. 3.
Fig. 4.
Fig. 5.
Fig. 6.

Notes

  1. 1.

    NetLogo is a multi-agent programmable modelling environment. It is used by many tens of thousands of students, teachers and researchers worldwide. It also powers HubNet participatory simulations. It is authored by Uri Wilensky and developed at the CCL. You can download it free of charge. You can also try it online through NetLogo Web: https://ccl.northwestern.edu/netlogo/.

References

  1. Agrawal, A.K., Catalini, C., Goldfarb, A.: The geography of crowdfunding. Technical report, National Bureau of Economic Research (2011)

    Google Scholar 

  2. Ahlers, G.K., Cumming, D., Günther, C., Schweizer, D.: Signaling in equity crowdfunding. Entrep. Theory Pract. 39(4), 955–980 (2015)

    CrossRef  Google Scholar 

  3. Bayus, B.L.: Crowdsourcing new product ideas over time: an analysis of the Dell Ideastorm community. Manage. Sci. 59(1), 226–244 (2013)

    CrossRef  Google Scholar 

  4. Berger, A.N., Udell, G.F.: Relationship lending and lines of credit in small firm finance. J. Bus. 68, 351–381 (1995)

    Google Scholar 

  5. Casamatta, C., Haritchabalet, C.: Dealing with venture capitalists: shopping around or exclusive negotiation. Rev. Finan. 18(5), 1743–1773 (2014)

    CrossRef  Google Scholar 

  6. Cassar, G.: The financing of business start-ups. J. Bus. Ventur. 19(2), 261–283 (2004)

    CrossRef  Google Scholar 

  7. Chan, C.R., Park, H.D., Patel, P., Gomulya, D.: Reward-based crowdfunding success: decomposition of the project, product category, entrepreneur, and location effects. Ventur. Cap. 20(3), 285–307 (2018)

    CrossRef  Google Scholar 

  8. Chen, X.P., Yao, X., Kotha, S.: Entrepreneur passion and preparedness in business plan presentations: a persuasion analysis of venture capitalists’ funding decisions. Acad. Manag. J. 52(1), 199–214 (2009)

    CrossRef  Google Scholar 

  9. Cosh, A., Cumming, D., Hughes, A.: Outside enterpreneurial capital. Econ. J. 119(540), 1494–1533 (2009)

    CrossRef  Google Scholar 

  10. David, N.: Validation and verification in social simulation: patterns and clarification of terminology. In: Squazzoni, F. (ed.) EPOS 2006. LNCS (LNAI), vol. 5466, pp. 117–129. Springer, Heidelberg (2009). https://doi.org/10.1007/978-3-642-01109-2_9

    CrossRef  Google Scholar 

  11. Di Pietro, F.: Deciphering crowdfunding. In: Lynn, T., Mooney, J.G., Rosati, P., Cummins, M. (eds.) Disrupting Finance. PSDBET, pp. 1–14. Springer, Cham (2019). https://doi.org/10.1007/978-3-030-02330-0_1

    CrossRef  Google Scholar 

  12. Felipe, I.J.D.S., Mendes-Da-Silva, W., Gattaz, C.C.: Crowdfunding research agenda. In: The 11th International Conference on Semantic Computing (ICSC), pp. 459–464. IEEE (2017)

    Google Scholar 

  13. Garcia, R.: Uses of agent-based modeling in innovation/new product development research. J. Prod. Innov. Manag. 22(5), 380–398 (2005)

    CrossRef  Google Scholar 

  14. Hellmann, T.: Entrepreneurs and the process of obtaining resources. J. Econ. Manag. Strategy 16(1), 81–109 (2007)

    CrossRef  Google Scholar 

  15. Howe, J.: Crowdsourcing: How the Power of the Crowd is Driving the Future of Business. Random House, New York (2008)

    Google Scholar 

  16. Izquierdo, L.R., Olaru, D., Izquierdo, S.S., Purchase, S., Soutar, G.N.: Fuzzy logic for social simulation using NetLogo. J. Artif. Soc. Soc. Simul. 18(4), 1 (2015)

    CrossRef  Google Scholar 

  17. Kirsch, D., Goldfarb, B., Gera, A.: Form or substance: the role of business plans in venture capital decision making. Strateg. Manag. J. 30(5), 487–515 (2009)

    CrossRef  Google Scholar 

  18. Kleemann, F., Voß, G., Rieder, K.: Un (der) paid innovators. the commercial utilization of consumer work through crowdsourcing. Sci. Technol. Innov. Stud. 4(1), 5–26 (2008)

    Google Scholar 

  19. Kuppuswamy, V., Bayus, B.L.: Crowdfunding creative ideas: the dynamics of project backers. In: Cumming, D., Hornuf, L. (eds.) The Economics of Crowdfunding, pp. 151–182. Springer, Cham (2018). https://doi.org/10.1007/978-3-319-66119-3_8

    CrossRef  Google Scholar 

  20. Lee, Y.-C., Yen, C.-H., Fu, W.-T.: Improving donation distribution for crowdfunding: an agent-based model. In: Xu, K.S., Reitter, D., Lee, D., Osgood, N. (eds.) SBP-BRiMS 2016. LNCS, vol. 9708, pp. 3–12. Springer, Cham (2016). https://doi.org/10.1007/978-3-319-39931-7_1

    CrossRef  Google Scholar 

  21. Macal, C.M., North, M.J.: Tutorial on agent-based modeling and simulation part 2: how to model with agents. In: Proceedings of the 38th Conference on Winter Simulation, Winter Simulation Conference, Monterey, CA, USA, pp. 73–83 (2006)

    Google Scholar 

  22. Mollick, E.: The dynamics of crowdfunding: an exploratory study. J. Bus. Ventur. 29(1), 1–16 (2014)

    CrossRef  Google Scholar 

  23. Papageorgiou, E.I., Kokkinos, K., Dikopoulou, Z.: Fuzzy sets in agriculture. In: Kahraman, C., Kaymak, U., Yazici, A. (eds.) Fuzzy Logic in Its 50th Year. SFSC, vol. 341, pp. 211–233. Springer, Cham (2016). https://doi.org/10.1007/978-3-319-31093-0_10

    CrossRef  Google Scholar 

  24. Rand, W., Rust, R.T.: Agent-based modeling in marketing: guidelines for rigor. Int. J. Res. Mark. 28(3), 181–193 (2011)

    CrossRef  Google Scholar 

  25. Renwick, M.J., Mossialos, E.: Crowdfunding our health: economic risks and benefits. Soc. Sci. Med. 191, 48–56 (2017)

    CrossRef  Google Scholar 

  26. Shane, S., Cable, D.: Network ties, reputation, and the financing of new ventures. Manage. Sci. 48(3), 364–381 (2002)

    CrossRef  Google Scholar 

  27. Wahjono, S.I., Marina, A.: Islamic crowdfunding: alternative funding solution. In: 1st World Islamic Social Science Congress (WIWWC). University Sultan Zainal Abidin, Putrajaya (2015)

    Google Scholar 

  28. Wati, C.R., Winarno, A.: The performance of crowdfunding model as an alternative funding source for micro, small, and medium-scale businesses in various countries. KnE Soc. Sci. 3(3), 16–33 (2018)

    Google Scholar 

  29. Wilensky, U., Rand, W.: An Introduction to Agent-Based Modeling: Modeling Natural, Social, and Engineered Complex Systems with NetLogo. MIT Press, Cambridge (2015)

    Google Scholar 

  30. Xu, Z.: Linguistic Decision Making. Springer, Heidelberg (2012). https://doi.org/10.1007/978-3-642-29440-2

  31. Zou, G., Gil, A., Tharayil, M.: An agent-based model for crowdsourcing systems. In: Proceedings of the 2014 Winter Simulation Conference, pp. 407–418. IEEE, Savanah (2014)

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Youssef Lamrani Alaoui .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and Permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Verify currency and authenticity via CrossMark

Cite this paper

Lamrani Alaoui, Y., Fakir, A.E., Tkiouat, M. (2022). Towards New Framework for Modelling Project Selection in Crowdfunding Platforms. In: Kacprzyk, J., Balas, V.E., Ezziyyani, M. (eds) Advanced Intelligent Systems for Sustainable Development (AI2SD’2020). AI2SD 2020. Advances in Intelligent Systems and Computing, vol 1418. Springer, Cham. https://doi.org/10.1007/978-3-030-90639-9_59

Download citation