Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/104448
Authors: 
Hornuf, Lars
Schwienbacher, Armin
Year of Publication: 
2014
Series/Report no.: 
Munich Discussion Paper 2014-43
Abstract: 
This paper first presents the development of the crowdinvesting market in Europe since its start in 2007. Then, using hand-collected data on the complete set of crowdinvesting campaigns run in Germany, the paper shows that successful campaigns tend to be launched by new startups and when the minimum ticket size is small so that more crowd investors can participate. Moreover, the use of the partiarisches Darlehen (a specific form of equity-linked notes not subject to prospectus regulation) adopted at the end of 2012 in Germany (as a response to alleviating regulatory constraints) has led to larger amounts being raised but also campaigns becoming more likely to achieve their targets. These two results combined indicate that contractual arrangements that enable more participation from the crowd tend to work best. Finally, campaigns launched on portals already having some experience are more likely to raise larger amounts. These findings should be of use to entrepreneurs who need to choose among a larger range of different crowdinvesting portals.
Subjects: 
entrepreneurial finance
business finance
crowdinvesting
equity crowdfunding
JEL: 
G3
L26
M13
K22
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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