events

Daniel Blaseg

9th of January 2017

Jour fixe takes place on the second monday of the month, starting at 5:00 p.m., in HoF 1.28 / Shanghai of the House of Finance (Campus Westend).

[Daniel Blaseg, E-Finance Lab]

Using Calculators to Distribute Knowledge: The Case of the Crowdfunding Calculator

Crowdfunding has attracted considerable interest as a new way of financing a variety of ventures, from creative works to for-profit companies. Platforms like Kickstarter, the largest reward-based crowdfunding site, has facilitated the raising of billions of dollars from millions of people.

But individuals and business owners have to engage in an increasingly complex array of financial decisions that are critical for the success of a crowdfunding campaign before it starts. Lack of knowledge in finance and the mechanisms of crowdfunding might impede that a successful crowdfunding campaign is profitable and not a financial disaster for the initiator.

The Crowdfunding Calculator (www.crowdfunding-calculator.com) is a free online tool for estimating the expected profit of a crowdfunding campaign. The tool is simple to use, robust, reasonably complete and publicly available.  The Crowdfunding Calculator aims to solve following typically problems:

  • Consideration of a wide range of possible fix and flexible costs
  • Probability of not reaching the funding goal and risk of bearing upfront fix costs
  • Probability of failing in production and potential repayments
  • Occurrence of particular costs for returns and delay

Additionally, the tool provides a database of more than 160,000 historical campaigns and allows initiators to research similar campaigns to benefit from their successes and shortcomings.