A Critical Analysis of Crowdfunding as an Alternative Form of Financing for Startups in Europe

Thèse de Bachelor , 2016 , 63 Pages , Note: 2,0

Gestion d'entreprise - Investissement et Financement

The aim of this paper is to evaluate whether crowdfunding is a realistic form of financing for startups in Europe. Therefore, theoretical principals of startup financing, as well as crowdfunding and its different dimensions, have to be scrutinized further. Moreover, a general overview of the European startup and crowdfunding market has to be provided. This paper focuses on commercial startups located in the member states of the European Union.

This paper begins with an introduction of the theoretical principles of startup financing. After a brief definition of startups, the occasions for obtaining financing are pointed out in the context of the life cycle model of a venture. In this regard, traditional forms of startup financing and the related issues are analysed. A more detailed look is also taken on the issue of information asymmetry.

Chapter 3 deals with crowdfunding as a source of financing. After an overview of the evolution of crowdfunding, this concept is examined in greater detail. Specifically, the definition and basics of crowdfunding, the main actors and the different forms of crowdfunding are presented. Next, this chapter deals with a typical process of establishing and running a crowdfunding campaign. The end of this chapter deals with the determinants of success of a crowdfunding campaign.

In Chapter 4, the European startup and crowdfunding markets are evaluated. Besides facts on these markets, this chapter also deals with insights into the European legal framework in the field of crowdfunding. Moreover, relevant platforms in Europe are presented. The chapter ends with a practical example of a crowdfunding campaign in Europe.

In Chapter 5, traditional forms of financing are compared to the relevant types of crowdfunding in Europe. After equity-based crowdfunding is compared to BAs and VCs, lending-based crowdfunding is compared to bank financing. The end of the chapter deals with the comparison of reward-based crowdfunding to financial boot-strapping.

In the last chapter, the investigative results are summarized and the achievement of the objective is evaluated. The paper concludes with a prospect of the development of crowdfunding in Europe.

Inhaltsverzeichnis

• 1 Introduction
• 1.1 Problem Description
• 1.2 Objective
• 1.3 Scope of Work
• 2 Startups Financing and Information Asymmetry
• 2.1 Definition and Characteristics of Startups
• 2.2 Startup Financing
• 2.2.1 Occasions for Financing on the Basis of the Life Cycle Model
• 2.2.2 Traditional Forms of Financing for Startups
• 2.2.2.1 Financial Bootstrapping
• 2.2.2.2 Business Angels
• 2.2.2.3 Venture Capital
• 2.2.2.4 Bank Financing
• 2.2.2.5 Issues regarding Startup Financing
• 2.3 Information Asymmetry
• 3 Crowdfunding as a Source of Financing
• 3.1 Historical Background and Evolution
• 3.2 Crowdfunding
• 3.2.1 Definition and Basics
• 3.2.2 Main Actors
• 3.2.3 Forms of Crowdfunding
• 3.2.4 Procedure of a Campaign
• 3.3 Determinants of Success
• 4 Startup Financing and Crowdfunding in Europe
• 4.1 Market Overview
• 4.1.1 Facts and Figures
• 4.1.2 Legal Framework
• 4.1.3 Relevant Platforms
• 4.2 Example Campaign: Panono
• 5 Crowdfunding vs. Traditional Forms of Financing
• 5.1 Equity Crowdfunding vs. Business Angels vs. Venture Capitalists
• 5.2 Lending-based Crowdfunding for Business vs. Bank Financing
• 5.3 Reward-based Crowdfunding vs. Financial Bootstrapping

Zielsetzung und Themenschwerpunkte

Die vorliegende Arbeit analysiert Crowdfunding als alternative Finanzierungsform für Startups in Europa. Ziel ist es, die Funktionsweise von Crowdfunding im Kontext der Startup-Finanzierung zu untersuchen und die Vor- und Nachteile im Vergleich zu traditionellen Finanzierungsformen aufzuzeigen.

• Die Herausforderungen der Startup-Finanzierung
• Die Rolle der Informationsasymmetrie bei der Startup-Finanzierung
• Die Funktionsweise und Arten von Crowdfunding
• Die Erfolgsfaktoren von Crowdfunding-Kampagnen
• Der Vergleich von Crowdfunding mit traditionellen Finanzierungsformen

Zusammenfassung der Kapitel

Kapitel 1 führt in das Thema ein und beschreibt die Problematik der Startup-Finanzierung, insbesondere die Herausforderungen im Hinblick auf den Zugang zu Finanzmitteln. Kapitel 2 beleuchtet die Finanzierungsbedürfnisse von Startups im Detail und analysiert die Informationsasymmetrie, die zwischen Startups und Investoren besteht. Kapitel 3 stellt Crowdfunding als alternative Finanzierungsform vor und erklärt seine Funktionsweise, verschiedene Arten und Erfolgsfaktoren. Kapitel 4 untersucht den europäischen Crowdfunding-Markt und beleuchtet die rechtlichen Rahmenbedingungen sowie wichtige Plattformen. Kapitel 5 vergleicht Crowdfunding mit traditionellen Finanzierungsformen und analysiert deren Vor- und Nachteile für Startups.

Schlüsselwörter

Startup-Finanzierung, Crowdfunding, Informationsasymmetrie, alternative Finanzierungsformen, Venture Capital, Business Angels, Bankfinanzierung, Equity Crowdfunding, Lending-based Crowdfunding, Reward-based Crowdfunding, europäischer Crowdfunding-Markt.

• Université: University of Applied Sciences Essen (FOM Hochschule für Oekonomie & Management)
• Note: 2,0
• Auteur: Lukas Schmitz (Auteur)
• Année de publication: 2016
• Pages: 63
• N° de catalogue: V323082
• ISBN (ebook): 9783668229631
• ISBN (Livre): 9783668229648
• Langue: allemand
• mots-clé: critical, analysis, crowdfunding, alternative, form, financing, startups, europe