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Register a new userRecommending investors for new startups by integrating network diffusion and investors domain preference
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Added by
Shuqi Xu
Publication date
2019
fields
Informatics Engineering
and research's language is
English
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Over the past decade, many startups have sprung up, which create a huge demand for financial support from venture investors. However, due to the information asymmetry between investors and companies, the financing process is usually challenging and time-consuming, especially for the startups that have not yet obtained any investment. Because of this, effective data-driven techniques to automatically match startups with potentially relevant investors would be highly desirable. Here, we analyze 34,469 valid investment events collected from www.itjuzi.com and consider the cold-start problem of recommending investors for new startups. We address this problem by constructing different tripartite network representations of the data where nodes represent investors, companies, and companies domains. First, we find that investors have strong domain preferences when investing, which motivates us to introduce virtual links between investors and investment domains in the tripartite network construction. Our analysis of the recommendation performance of diffusion-based algorithms applied to various network representations indicates that prospective investors for new startups are effectively revealed by integrating network diffusion processes with investors domain preference.
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To bring their innovative ideas to market, those embarking in new ventures have to raise money, and, to do so, they have often resorted to banks and venture capitalists. Nowadays, they have an additional option: that of crowdfunding. The name refers to the idea that funds come from a network of people on the Internet who are passionate about supporting others projects. One of the most popular crowdfunding sites is Kickstarter. In it, creators post descriptions of their projects and advertise them on social media sites (mainly Twitter), while investors look for projects to support. The most common reason for project failure is the inability of founders to connect with a sufficient number of investors, and that is mainly because hitherto there has not been any automatic way of matching creators and investors. We thus set out to propose different ways of recommending investors found on Twitter for specific Kickstarter projects. We do so by conducting hypothesis-driven analyses of pledging behavior and translate the corresponding findings into different recommendation strategies. The best strategy achieves, on average, 84% of accuracy in predicting a list of potential investors Twitter accounts for any given project. Our findings also produced key insights about the whys and wherefores of investors deciding to support innovative efforts.
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Recommender systems have played a vital role in online platforms due to the ability of incorporating users personal tastes. Beyond accuracy, diversity has been recognized as a key factor in recommendation to broaden users horizons as well as to promote enterprises sales. However, the trading-off between accuracy and diversity remains to be a big challenge, and the data and user biases have not been explored yet. In this paper, we develop an adaptive learning framework for accurate and diversified recommendation. We generalize recent proposed bi-lateral branch network in the computer vision community from image classification to item recommendation. Specifically, we encode domain level diversity by adaptively balancing accurate recommendation in the conventional branch and diversified recommendation in the adaptive branch of a bilateral branch network. We also capture user level diversity using a two-way adaptive metric learning backbone network in each branch. We conduct extensive experiments on three real-world datasets. Results demonstrate that our proposed approach consistently outperforms the state-of-the-art baselines.
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