A stochastic model for controlling friends and family investment in crowdfunding
Résumé
Crowdfunding is popular among entrepreneurs who aim to bypass classical funding channels and directly address the crowd via Internet-based Crowdfunding platforms (CFP). Friends and family (F&F) are identified as a source of early funding for projects. Several studies have observed that a large portion of the collected funds in small projects is actually invested by F&F, which means that this source of funds can be controlled over time to improve the project's probability of success. Specifically, we show that F&F investments injected at the right time during the crowdfunding campaign can maximize the total amount of funds collected by the end of the campaign. The model proposed in this work aims to give crowdfunding initiatives a powerful boost by strategically managing investments from friends and family (F&F). In particular, we focus on developing a novel mathematical model for enhancing crowdfunding success.
Origine | Fichiers produits par l'(les) auteur(s) |
---|