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A Novel Dynamic Hierarchical Evaluation Framework for Strategic Overfunding Allocation Across Crowdfunding Typologies
1Department of Public Finance and Tax Administration, National Taipei University of Business, Taipei, Taiwan.
Evaluation Review
|August 11, 2026
Summary
Entrepreneurs face overfunding challenges. This study provides a decision framework for allocating excess crowdfunding capital, considering project type and overfunding level for optimal strategy.
Area of Science:
- Business and Management
- Financial Technology
- Entrepreneurship
Background:
- Crowdfunding markets are rapidly growing, presenting entrepreneurs with the challenge of allocating excess capital effectively.
- Existing research primarily focuses on achieving funding goals, lacking systematic guidance for managing overfunding scenarios.
- Differing crowdfunding typologies (reward-based, equity-based, debt-based) and varying overfunding degrees create unique strategic challenges not yet integrated into decision frameworks.
Purpose of the Study:
- To develop a decision-support framework for evaluating excess capital allocation strategies in crowdfunding.
- To determine preferred allocation options across different crowdfunding typologies and overfunding gradients.
- To provide contextualized strategic guidance for entrepreneurs managing overfunded projects.
Main Methods:
- Development of a hierarchical compromise decision-support framework.
- Evaluation of excess capital allocation strategies across nine contexts (three typologies × three gradients).
- Identification of critical factors influencing strategy selection and five strategic options.
Main Results:
- Crowdfunding typologies exhibit distinct strategic divergences: reward-based focuses on quality, equity-based on retention, and debt-based on risk reduction.
- Critical factors for strategy vary with overfunding levels, shifting focus from stakeholder management to operational execution and foundational capabilities.
- Significant interaction effects between typology and overfunding degree necessitate context-specific allocation strategies.
Conclusions:
- The study offers a novel decision-support framework for post-success capital allocation in crowdfunding, considering typology and overfunding.
- Findings reveal nonlinear effects of overfunding, highlighting its dual role in capability building and stakeholder management burdens.
- Provides practical implications for crowdfunding platforms, entrepreneurs, and consultants to enhance resource allocation efficiency.
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