Crowdfunding as a New Financing Tool

Leboeuf, Gaël; Schwienbacher, Armin

doi:10.1007/978-3-319-66119-3_2

Cited by 35 publications

(30 citation statements)

References 36 publications

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“…Startups applying for equity crowdfunding are often dependent on external backers to ensure their survival (Tech 2018). Crowdfunding represents an alternative to financing through business angels (BAs) in the early stages, when it may be difficult to obtain financing via banks or venture capitalists (VCs) (Leboeuf and Schwienbacher 2018). However, there are several other reasons for why ventures participate in crowdfunding, such as marketing effects and being able to contact potential customers and investors (Angerer et al 2017).…”

Section: Theorymentioning

confidence: 99%

Signals in equity-based crowdfunding and risk of failure

Reichenbach

Walther

2021

Financ Innov

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This study investigates signal validity in equity-based crowdfunding by examining whether signals that increase crowd participation are associated with higher post-offering success. Post-offering success is measured as the probability of survival. We use a hand-collected data set of 88 campaigns with over 64,000 investments and 742 updates from a well-established and leading German equity-based crowdfunding platform, Companisto. We find that indicating that the chief executive officer holds a university degree and a higher number of business-related updates are associated with a lower risk of failure, which is in line with recent research on offering success. The number of updates on external certification, promotions, and the team is associated with a higher risk of failure. In contrast to recent findings on offering success, we find that the equity share offered is positively related to post-offering success, whereas a high number of large investments or updates on campaign development are accompanied by a higher probability of failure. Our results provide guidance for entrepreneurs and investors regarding which signals are worth sending or using. Furthermore, these results suggest that investors are partly using wrong signals and challenge the rationality and wisdom of the crowd.

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Section: Theorymentioning

confidence: 99%

Signals in equity-based crowdfunding and risk of failure

Reichenbach

Walther

2021

Financ Innov

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“…Eine weitere Form ist das Equity-based Crowdfunding (Hornuf und Schwienbacher 2018). Laut Leboeuf und Schwienbacher (2018) und Vismara (2016) ziehen beide Crowdfunding-Formen verschiedene Arten von Kapitalgebern und Startups an.…”

Section: Die Bedeutung Von Crowdfunding Für Startupsunclassified

Digital Prototyping: Funktionen und Einsatzmöglichkeiten für das Crowdfunding

Cruppe¹

2020

Handbuch Digitale Wirtschaft

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Crowdfunding gewinnt heute zunehmend an Relevanz, indem es für Startups eine neue Möglichkeit darstellt, um einerseits finanzielle Ressourcen und andererseits Ressourcen in Form von Wissen, Ideen oder Lösungsvorschlägen durch die Interaktion mit dem Kapitalgeber zu erhalten. Vor diesem Hintergrund argumentieren einzelne Studien bereits, dass Crowdfunding einen positiven Einfluss auf Innovation hat, fordern jedoch mehr und tiefergehende Forschung in diesem Bereich. Dieser Beitrag untersucht inwieweit der Einsatz von Digital Prototyping im Kontext von Crowdfunding-Plattformen innovationsfördernd sein kann. Hierbei werden sowohl Vorteile als auch Nachteile des Ansatzes herausgearbeitet und ein Positionierungsmodell für das Digital Prototyping abgeleitet. Im Rahmen des Beitrags soll aufgezeigt werden, dass Digital Prototyping einen vielversprechenden Ansatz für Startups darstellt, indem ein (detailliertes) Feedback von den Kapitalgebern ermöglicht wird und Letzterer iterativ in die Produktentwicklung miteinbezogen werden kann. Anhand der Fallstudie des Startups Filippo Loreti und dessen Crowdfunding-Projekt wird der Einsatz von Digital Prototyping analysiert.

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“…Taken together, these small amounts of money can become large. This development could arise because the Internet has significantly reduced the costs of intermediation so that even small entrepreneurs can rely on the crowd (Belleflamme et al, 2014;Leboeuf and Schwienbacher, 2018;Mollick, 2014).…”

Section: The Functioning Of Crowdfunding Platformsmentioning

confidence: 99%

“…Given the different forms of crowdfunding available, it is not surprising that they also attract different types of crowdfunders and not just different types of entrepreneurs (Leboeuf and Schwienbacher, 2018;Vismara, 2016). In reward-based crowdfunding, backers generally are compensated by receiving the project's product before everyone else.…”

Section: The Functioning Of Crowdfunding Platformsmentioning

confidence: 99%

Crowdfunding and Innovation

Hervé

Schwienbacher

2018

Journal of Economic Surveys

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Entrepreneurs have started relying on crowdfunding to fund their investments. This paper surveys the literature linking crowdfunding with innovation in entrepreneurial firms. Two distinct areas are discussed. First, crowdfunding has the potential to foster innovation by offering new sources of capital to innovation‐driven firms and thereby reduce the funding gap for innovative startups. Second, crowdfunding offers a way for the crowd to participate in the innovation process by providing feedback to the entrepreneur. This feedback can take various forms, including providing ideas on the development of the product during and after the campaign (in the spirit of crowdsourcing), and providing valuable information on the future demand for the new product.

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Crowdfunding as a New Financing Tool

Cited by 35 publications

References 36 publications

Signals in equity-based crowdfunding and risk of failure

Signals in equity-based crowdfunding and risk of failure

Digital Prototyping: Funktionen und Einsatzmöglichkeiten für das Crowdfunding

Crowdfunding and Innovation

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