This thesis is based on the general problem of how and where to raise capital to achieve their defined goals. Crowdinvesting is a new method, but yet largely unexplored, possibility to do so. Especially for young and innovative companies seeking capital to kick-start their business, crowdinvesting has been labeled as a new trend. The following research focusses on the question: What are the motives, chances, and risks from a company's perspective regarding the new phenomenon of crowdinvesting?
Crowdinvesting is the process where investors are approached about the financing of these young and innovative companies, but sometimes also established companies or selected projects are financed. The basic principle of crowdinvesting is that individual persons on the internet invest money in a company and in turn receive the right to participate in the success of the business. In return, the companies receive the financing amount as equity or debt capital.
The thesis aims to contribute to a more detailed understanding of crowdinvesting from a theoretical and empirical perspective. Due to its innovative character, most information about crowdinvesting is at the moment based on working papers, a few specialist books, and database entries. The present thesis uses the existing literature as a core to explain the concept. To ensure a profound understanding of the topic of crowdinvesting, this thesis begins with a theoretical framework in chapter 2. The chapter describes the theory of the new institutional economics and the basics of financing, including the most common financing methods. Chapter 3 then introduces the crowd as a supporting and financing instrument for companies. In particular, the concepts of crowdsourcing, crowdfunding, and crowdinvesting are expounded and illustrated with examples. Subsequently, following the theoretical aspects, the crowdinvesting market in Germany is empirically analyzed and the financing option of crowdinvesting is critically appraised in chapter 4 to answer the research question. To conclude, the findings of the previous chapters are summarized and an outlook is given within a discussion.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 1.1 Statement of the problem and research question
- 1.2 Goal and approach of this thesis
- 2. Theoretical framework
- 2.1 New institutional economics
- 2.1.1 Transaction cost economics
- 2.1.2 Principal-agent theory
- 2.1.3 Financial intermediation
- 2.2 Traditional financing
- 2.2.1 Basics
- 2.2.1.1 Mezzanine capital
- 2.2.1.2 Financing phases
- 2.2.2 Financing methods
- 2.2.2.1 Private equity and venture capital
- 2.2.2.2 Business angels
- 2.2.2.3 Debt capital
- 2.2.2.4 Bootstrapping and family, friends, and fools
- 2.2.2.5 Public funds
- 3. Introducing the crowd into the financing process
- 3.1 Crowdsourcing - The origin
- 3.1.1 Types of crowdsourcing
- 3.1.2 Motivations of contributors
- 3.2 Crowdfunding
- 3.2.1 Donation-based crowdfunding
- 3.2.2 Reward-based crowdfunding
- 3.2.3 Lending-based crowdfunding
- 3.2.4 Crowdinvesting
- 3.2.4.1 Definition and characteristics
- 3.2.4.2 Actors
- 3.2.4.2.1 Investors
- 3.2.4.2.2 Platforms
- 3.2.4.2.3 Agency problems in crowdinvesting
- 3.2.4.3 Process
- 3.2.4.4 Legal situation in Germany
- 4. Empirical analysis of the crowdinvesting market in Germany
- 4.1 Overview
- 4.1.1 Market development 2011-2016
- 4.1.2 Characteristics of the companies in 2016
- 4.1.3 Platforms
- 4.1.4 Financing instruments in practice
- 4.1.5 Status of crowdinvesting projects 2011-2016
- 4.2 Critical appraisal
- 4.2.1 Motives
- 4.2.2 Chances
- 4.2.3 Risks
- 5. Conclusion and discussion
- 5.1 Conclusion
- 5.2 Discussion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis analyzes the crowdinvesting market in Germany from a company's perspective. The primary objective is to explore the motives, opportunities, and risks associated with crowdinvesting for German companies. The thesis seeks to understand the dynamics of this emerging financing model and its potential impact on the traditional financing landscape. The key themes examined in the work include: * **The theoretical framework of new institutional economics:** This section delves into transaction cost economics, principal-agent theory, and financial intermediation to provide a theoretical foundation for understanding the role of crowdinvesting. * **Traditional financing methods:** The study explores the existing methods of financing for companies, including private equity, venture capital, debt capital, and public funds. * **Crowdfunding and crowdinvesting:** The thesis discusses the emergence and development of crowdfunding and its sub-category, crowdinvesting, focusing on its characteristics, actors involved, and legal framework in Germany. * **Empirical analysis of the German market:** The study provides an in-depth analysis of the crowdinvesting market in Germany, covering its development, platform landscape, financing instruments, and the status of crowdinvesting projects. * **Critical appraisal of crowdinvesting:** The research analyzes the motives, opportunities, and risks associated with crowdinvesting for companies, providing insights into the potential benefits and challenges of this alternative financing model.Zusammenfassung der Kapitel (Chapter Summaries)
* **Chapter 1: Introduction:** This chapter sets the stage for the thesis by introducing the research problem, outlining the research question, and defining the scope and approach of the study. * **Chapter 2: Theoretical framework:** This chapter lays the groundwork for the analysis by providing a theoretical foundation based on the principles of new institutional economics. It examines concepts such as transaction cost economics, principal-agent theory, and financial intermediation, highlighting their relevance to the crowdinvesting phenomenon. * **Chapter 3: Introducing the crowd into the financing process:** This chapter explores the emergence of crowdsourcing and its evolution into crowdfunding, focusing on different types of crowdfunding models, the motivations of contributors, and the specific characteristics of crowdinvesting. * **Chapter 4: Empirical analysis of the crowdinvesting market in Germany:** This chapter provides a comprehensive analysis of the crowdinvesting market in Germany, including market development trends, the characteristics of active companies, platform landscapes, financing instruments, and the status of crowdinvesting projects. * **Chapter 5: Conclusion and discussion:** This chapter summarizes the key findings of the thesis, draws conclusions based on the analysis, and discusses the implications of the research for the future of crowdinvesting in Germany.Schlüsselwörter (Keywords)
Crowdinvesting, new institutional economics, transaction cost economics, principal-agent theory, financial intermediation, traditional financing, private equity, venture capital, debt capital, crowdfunding, donation-based crowdfunding, reward-based crowdfunding, lending-based crowdfunding, Germany, market analysis, company motives, opportunities, risks.- Citar trabajo
- Tim Meierkord (Autor), 2017, Analysis of the Crowdinvesting Market in Germany. Motives, Chances, and Risks from a Company's Perspective, Múnich, GRIN Verlag, https://www.grin.com/document/376095
