Selection of a crowdfunding platform by entrepreneurs using a multi-criteria approach: an application to green energy investment projects

Abstract

In the context of crowdfunding, one of the most important decisions entrepreneurs face is selecting an online crowdfunding platform (CFP) to seek financing for their projects. However, there is limited knowledge on the characteristics of CFPs, which are often characterized by qualitative factors that are difficult to measure. To fill this gap, this study presented an assessment framework for evaluating CFPs based on the Multiple Criteria Decision-Making (MCDM) theory. We proposed an evaluation and selection model for the most suitable CFP for an investment project based on seven criteria that encompass its main characteristics. By applying the Fuzzy Technique for Order Preference by Similarity to Ideal Solution (fuzzy TOPSIS), we presented a practical application for a green energy investment project within the Spanish context. Focusing on equity CFPs, a final sample of six feasible platforms was evaluated. The results of this study could be of interest to entrepreneurs, investors, and academics as they provide information about the criteria for selecting the best CFP to obtain financing.