How do crowd investors prioritize evaluation criteria for equity crowdfunding? A decision support model

• Published in: International journal of Islamic and Middle Eastern finance and management 2025-02, Vol.18 (2), p.271-293
• Main Authors: Almubarak, Norah, Almulhim, Tarifa
• Format: Article
• Language: English
• Subjects: Campaigns; Case studies; Decision making; Entrepreneurs; Fund raising; Investment decision; Investments; Investors; Prioritizing; Transparency; Uncertainty; Venture capital; Ventures
• ISSN: 1753-8394; 1753-8408
• DOI: 10.1108/IMEFM-03-2024-0146

Purpose The purpose of this paper is to propose a decision support model to prioritize equity crowdfunding (ECF) evaluation criteria under an uncertain environment. Design/methodology/approach The proposed decision support model first identifies a holistic list of evaluation criteria and subcriteria. These criteria are then analyzed using the analytic hierarchy process (AHP) method in an interval-valued intuitionistic fuzzy (IVIF) environment to identify the relative importance attached by crowdfunding investors to five sets of evaluation criteria (fundraiser, platform, project, campaign and investment characteristics) and their associated subcriteria. The proposed decision support model and ECF evaluation criteria were empirically examined using a real-life case study from January to February 2023. Findings The case study illustrated that the decision support model enhanced fairness and transparency in the prioritization of ECF evaluation criteria. Project characteristics were the most important criterion, followed by fundraiser characteristics and investment characteristics. These results can serve as a benchmark to help crowd investors choose ventures more wisely and make better investment decisions. Originality/value The tasks of modeling and prioritizing ECF evaluation criteria are relatively rarely addressed in the literature, especially under uncertainty. This study is one of the first attempts to use the AHP to explore ECF evaluation criteria in an IVIF environment; in particular, it sheds light on the importance that crowd investors attach to criteria related to fundraiser, platform, project, campaign and investment characteristics.