A good idea for a product or service is often not enough to start a business. Especially at the beginning of starting a business financial resources are needed to invest into the necessary equipment and materials.
But not only new companies, so called startups, but also small and medium enterprises (SMEs) are in need of new capital for expanding their product range or for new product developments which cannot always be obtained from the bank or from the stock market.
Bank financing plays an important role in Germany. However, in 2008 about 35% of German companies complain about problems in credit financing and access to credits, especially small enterprises with an annual turnover to EUR 1 million and large enterprises of more than EUR 50 million.
The decline in lending can also be seen from the fact that banks are increasingly taking more money for loan repayments from companies than to forgive new loans.
This indicates that lending is difficult. Companies therefore have to seek alternative sources of funding. One of several financing alternatives is crowdfunding. This type of financing is subject to this term paper.
Crowdfunding is a project-based form of financing the above mentioned case examples, by which capital from a plurality of donors within a predetermined period of time is raised.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Objective
- Structure
- Definitions and conceptual delimitations
- Crowdfunding platforms
- The crowdfunding process
- Crowdfunding as a source of finance
- Crowdsupporting
- Crowdinvesting
- Crowdlending
- Crowddonating
- Conclusion and Outlook
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The objective of this paper is to identify the challenges and opportunities of international crowdsourcing in the business industry, demonstrating its impact on current business models and its potential for value creation.
- Crowdfunding as an alternative financing source for startups and SMEs.
- Different types of crowdfunding (crowdsupporting, crowdinvesting, crowdlending, crowddonating).
- The role of internet-based platforms in facilitating crowdfunding.
- The growth and increasing importance of crowdfunding.
- Challenges and opportunities presented by international crowdsourcing.
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This chapter introduces the topic of crowdfunding as an alternative financing source, particularly relevant for startups and SMEs facing difficulties accessing traditional bank loans. It highlights the increasing challenges faced by businesses in securing funding from banks, particularly smaller enterprises, and positions crowdfunding as a viable solution. The chapter also provides a brief definition of crowdfunding and underscores its growing importance due to the ease of access and direct connection facilitated by internet-based platforms. The rapid growth of crowdfunding, as evidenced by increasing annual capital collection, is presented as a key motivator for this study.
Definitions and conceptual delimitations: This section would delve into a precise definition of crowdfunding, differentiating it from other related concepts. It would likely explore various types of crowdfunding platforms and analyze their functionalities. The chapter would also explain the mechanics of the crowdfunding process, outlining the stages involved from project initiation to funding success. It aims to create a clear and comprehensive understanding of the terminology and processes essential to the study of crowdfunding.
Crowdfunding as a source of finance: This chapter would provide a detailed exploration of different types of crowdfunding models. It would systematically examine crowdsupporting, crowdinvesting, crowdlending, and crowddonating, analyzing the characteristics, advantages, and disadvantages of each. The discussion would likely encompass the diverse stakeholder roles and motivations within each model, providing a comparative analysis to highlight their unique features and contributions to the broader crowdfunding landscape. The analysis would also consider how each model operates within the context of the overall market dynamics and the implications for businesses seeking funding through these diverse channels.
Schlüsselwörter (Keywords)
Crowdfunding, alternative finance, startups, SMEs, crowdsupporting, crowdinvesting, crowdlending, crowddonating, internet platforms, business models, value creation, financing challenges.
Frequently Asked Questions: Crowdfunding - A Comprehensive Language Preview
What is the purpose of this document?
This document provides a comprehensive preview of a text on crowdfunding, including its table of contents, objectives, key themes, chapter summaries, and keywords. It serves as an overview for academic use, allowing for analysis of the themes within the text in a structured and professional manner.
What topics are covered in the document's Table of Contents?
The Table of Contents includes an Introduction (with sections on Objective and Structure), Definitions and Conceptual Delimitations (covering Crowdfunding Platforms and The Crowdfunding Process), Crowdfunding as a Source of Finance (exploring Crowdsupporting, Crowdinvesting, Crowdlending, and Crowddonating), and finally, a Conclusion and Outlook.
What are the main objectives and key themes explored?
The main objective is to identify the challenges and opportunities of international crowdsourcing in the business industry, demonstrating its impact on current business models and its potential for value creation. Key themes include crowdfunding as an alternative financing source for startups and SMEs, different types of crowdfunding, the role of internet-based platforms, the growth and importance of crowdfunding, and challenges and opportunities presented by international crowdsourcing.
What are the chapter summaries?
The Introduction sets the stage by discussing crowdfunding as an alternative financing source for startups and SMEs, highlighting the increasing challenges in securing traditional bank loans and the rise of crowdfunding as a solution. The Definitions and conceptual delimitations chapter delves into precise definitions, differentiating crowdfunding from other concepts, exploring platform functionalities, and explaining the crowdfunding process. The Crowdfunding as a source of finance chapter provides a detailed exploration of different crowdfunding models (crowdsupporting, crowdinvesting, crowdlending, and crowddonating), analyzing their characteristics, advantages, disadvantages, and stakeholder roles.
What are the key words associated with this document?
The keywords include Crowdfunding, alternative finance, startups, SMEs, crowdsupporting, crowdinvesting, crowdlending, crowddonating, internet platforms, business models, value creation, and financing challenges.
What types of crowdfunding are discussed?
The document discusses four main types of crowdfunding: Crowdsupporting, Crowdinvesting, Crowdlending, and Crowddonating. Each type is analyzed in terms of its characteristics, advantages, disadvantages, and its role within the broader crowdfunding landscape.
Who would benefit from reading this preview?
Researchers, academics, and students studying business, finance, entrepreneurship, and related fields would find this preview beneficial. It provides a structured overview of a comprehensive text on crowdfunding, facilitating in-depth analysis of the subject matter.
What is the overall focus of the previewed text?
The overall focus is on understanding crowdfunding as an alternative financing source, particularly its impact on startups and SMEs, its different models, its facilitation through internet platforms, and its associated challenges and opportunities in an international context. The text aims to provide a comprehensive and structured understanding of the subject.
- Quote paper
- Malik Dakdaki (Author), 2016, Crowdfunding as a source of finance. Crowdsupporting, Crowdinvesting, Crowdlending, Crowddonating, Munich, GRIN Verlag, https://www.grin.com/document/369323
