Crowdfunding Framework for Automated Share Allocation
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Solution Overview
Problem
Conventional crowdfunding methods lack a structured framework for investors to fund new businesses and receive a portion of future revenues or profits, often relying on intermediary services with limited transparency and efficiency in share purchasing and dividend distribution.
Innovation Solution
A crowdfunding system that allows businesses to set up funding proposals with share offerings, where investors can purchase shares corresponding to a percentage of business revenue or profit, with terms specifying dividend payment conditions, and an integrated payment system for automatic dividend allocation based on share ownership.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional crowdfunding methods are used with intermediary services, then funding can be pooled from multiple individuals, but transparency and efficiency in share purchasing and dividend distribution are limited
Solution Approach 1:
The patent extracts and eliminates the intermediary service from the crowdfunding system, allowing investors to directly purchase shares and receive dividends from the business without third-party involvement. This removal of the intermediary layer directly improves transparency while reducing system complexity.
Solution Approach 2:
The system enables self-service by allowing investors to directly interact with the business through automated online platforms for share purchasing and dividend receipt. The business automatically manages share allocations and dividend distributions without requiring intermediary services, thereby improving both transparency and efficiency.
2Productivity
If manual dividend distribution is used, then investors can receive profits, but the process is time-consuming and inefficient
Solution Approach 1:
The patent replaces manual mechanical dividend distribution processes with automated electronic systems. The system automatically calculates share allocations, determines dividend amounts based on profit percentages, and executes payments electronically, eliminating the time-consuming manual processes while significantly improving distribution efficiency.
Solution Approach 2:
The system performs preliminary actions by pre-establishing share ownership records and profit-sharing terms before dividend distribution. This allows the automated system to quickly calculate and execute dividend payments without manual intervention, reducing both time loss and improving productivity.
3Ease of operation
If share purchasing processes are simplified, then investor participation increases, but proper allocation and tracking of shares becomes more difficult
Solution Approach 1:
The patent replaces complex manual share allocation tracking with automated electronic recording systems. The system automatically tracks share purchases, calculates ownership percentages, and maintains accurate records without requiring complex manual processes, thereby simplifying the investor experience while ensuring proper allocation tracking.
Solution Approach 2:
The system creates and maintains digital copies of share ownership records and allocation data. These electronic copies enable easy tracking and verification of share distributions while keeping the interface simple for investors. The automated system manages the complexity of tracking while presenting a simplified purchasing process to users.
Data Source
AI summary
A computing device receives a request to establish a crowdfunding project for a business, the request describing an amount of funding being requested by the business, and terms and conditions for owning shares in the business. The computing device generates a crowdfunding interface for the crowdfunding project, the interface including the amount of funding being requested, the terms and conditions for owning shares in the business, a share price, and an option for purchasing shares. The computing device receives, from investors and through the crowdfunding interface, requests to purchase a specified number of shares in the business. The computing device allocates, to each investor, the respective number of shares purchased. The computing device determines that the amount of funding being requested by the business has been satisfied. The computing device determines that the business is able to pay dividends. The computing device provides a respective dividend payment to each investor.