Powered by OpenAIRE graph
Found an issue? Give us feedback
image/svg+xml art designer at PLoS, modified by Wikipedia users Nina, Beao, JakobVoss, and AnonMoos Open Access logo, converted into svg, designed by PLoS. This version with transparent background. http://commons.wikimedia.org/wiki/File:Open_Access_logo_PLoS_white.svg art designer at PLoS, modified by Wikipedia users Nina, Beao, JakobVoss, and AnonMoos http://www.plos.org/ Foundations and Tren...arrow_drop_down
image/svg+xml art designer at PLoS, modified by Wikipedia users Nina, Beao, JakobVoss, and AnonMoos Open Access logo, converted into svg, designed by PLoS. This version with transparent background. http://commons.wikimedia.org/wiki/File:Open_Access_logo_PLoS_white.svg art designer at PLoS, modified by Wikipedia users Nina, Beao, JakobVoss, and AnonMoos http://www.plos.org/
Manufacturing & Service Operations Management
Article . 2019 . Peer-reviewed
Data sources: Crossref
DBLP
Article . 2025
Data sources: DBLP
DBLP
Article . 2020
Data sources: DBLP
versions View all 4 versions
addClaim

Crowdfunding via Revenue-Sharing Contracts

Authors: Soraya Fatehi; Michael R. Wagner;

Crowdfunding via Revenue-Sharing Contracts

Abstract

In this paper we analyze a new model of crowdfunding recently introduced by Bolstr and Localstake. In this model, a platform acts as a matchmaker between a firm needing funds and a crowd of investors willing to provide capital. Once the firm is funded, it pays back the investors using revenue sharing contracts, with a pre-specified investment multiple (investors will receive M ≥ 1 dollars for every dollar invested) and a revenue-sharing proportion, over an investment horizon of uncertain duration. The firm determines its optimal contract parameters to maximize its expected net present value, subject to investor participation constraints and platform fees. A natural multi-period formulation results in a non-convex stochastic optimization problem, which we solve numerically using Monte Carlo simulation and a grid-based optimization framework, for normally distributed cash flows that are parameterized using real data from Bolstr.

Related Organizations
  • BIP!
    Impact byBIP!
    selected citations
    These citations are derived from selected sources.
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    45
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Top 10%
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Top 10%
Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
45
Top 10%
Top 10%
Top 10%
gold