Browse Prior Art Database

Method and System for Recommending Investors for Crowdfunding Projects

IP.com Disclosure Number: IPCOM000234852D
Publication Date: 2014-Feb-11
Document File: 5 page(s) / 107K

Publishing Venue

The IP.com Prior Art Database

Related People

Daniele Quercia: INVENTOR [+2]

Abstract

A method and system is disclosed for recommending investors for crowdfunding projects. The method and system proposes different ways of recommending the investors from social networking sites for a crowdfunding website. A hypothetical analysis is conducted for determining pledging behaviors of the investors and translating the pledging behaviors into different recommendation strategies. The best recommendation strategy achieves higher accuracy in predicting a list of social networking accounts of potential investors for a crowdfunding project. The method and system also determines key factors associated with the investors who decide to support innovative efforts.

This text was extracted from a Microsoft Word document.
At least one non-text object (such as an image or picture) has been suppressed.
This is the abbreviated version, containing approximately 26% of the total text.

Method and System for Recommending Investors for Crowdfunding Projects

Abstract

A method and system is disclosed for recommending investors for crowdfunding projects.  The method and system proposes different ways of recommending the investors from social networking sites for a crowdfunding website.  A hypothetical analysis is conducted for determining pledging behaviors of the investors and translating the pledging behaviors into different recommendation strategies.  The best recommendation strategy achieves higher accuracy in predicting a list of social networking accounts of potential investors for a crowdfunding project.  The method and system also determines key factors associated with the investors who decide to support innovative efforts.

Description

Disclosed is a method and system for recommending investors for crowdfunding projects.  The method and system derives a set of hypothesis related to pledging behavior of the investors.  A pledging behavior of one investor differs from pledging behavior of another.  The initial funds for a project are normally obtained from family members and friends.  The family members and friends tend to be newcomers or occasional investors who support the project because of the personal relationship with a founder of the project.  To test an impact on the pledging behavior, the method and system classifies investors based on number of projects supported so far.  Here, the investors are classified as occasional investors who support less than 4 projects and frequent investors who support more than 32 projects.  The method and system determines whether an individual is an investor or donates funds for the project as a friend of the founder based on level of activity associated with the project.  If the individual is an active supporter of the project, then a probability of the individual becoming an investor is high and a probability of donating funds as a friend is less.

A frequent investor focuses on founders with better skills.  A successful founder is a good manager as well.  It is estimated that the frequent investors pay attention to a manner in which a project is managed.  Since management of a project requires frequent updates after launch and audience interactions, a first hypothesis supports an idea that the project is likely to be financed by frequent investors if the frequent investor is the founder of the project.  The first hypothesis also supports that the project is likely to be financed by the frequent investors when the investors frequently update the project after launching it and spend extra efforts to execute the project.  Further, according to the first hypothesis, the project is likely to be financed by frequent investors if the frequent investors answer requests from a potential investor by interacting with audience, allowing for higher funding levels and setting a dedicated website.

The frequent investors invest in high capital projects.  The method and system co...