Current State of Crowdfunding in Europe 2016 - Raport (original) (raw)

Complementarity and interconnection between CSR and crowdfunding: A case study in Greece

Corporate Social Responsibility (CSR) and crowdfunding are two concepts that have been affected through digitalization. Crowdfunding has emerged as an alternative form of financing that collects funds from the 'crowd' and channel them into various social causes or business projects. It provides opportunities that can potentially radically change the traditional landscape of CSR. Companies can use crowdfunding when designing and implement their CSR strategies through various ways, like increasing available funding, raising awareness and engagement, building communication channels with stakeholder and increasing marketing. This paper explores and discusses the emerging linkages, interconnections and complementarities between crowdfunding and CSR. It also highlights the importance of crowdfunding for the banking sector and presents the act4Greece donation/reward-based crowdfunding program, developed by a commercial banking institution in Greece, as a pioneering case study that incorporates crowdfunding in the bank's CSR strategy.

Crowdfunding: A New Untapped Opportunity for Biotechnology Start-ups

is a recent graduate of the joint master of advanced studies (MAS) degree program in health policy and law, University of California, ABSTRAcT Crowdfunding is an evolving popular Internet-based process used to raise funding that has been employed by a few start-ups in the biotechnology industry. To solicit funding, companies profile their case on a specialized web platform (generally called a " crowdfunding portal ") to ask the site members (i.e., the " crowd ") who then choose which projects they would like to fund, in exchange for financial and nonfinancial inducements. In this paper we examine the evolving commercial and regulatory crowdfunding landscape and also identify case studies of biotechnology industry use. We find that a variety of crowdfunding mechanisms have been used and this alternative financing strategy may represent a viable option for biotechnology start-ups during early stage research or early stage clinical trials. A successful crowdfunding campaign may pave the way for the enterprise's future capital formation phases by attracting angel investors or venture capital because it shows that the business or project is viable. However, crowdfunding, like all other forms of capital formation, requires careful planning and execution before, during, and after a campaign. Strategies that appropriately tap into this innovative and disruptive use of technology and social networks may prove to be a unique capital formation niche for biotechnology start-ups; one that has yet to be fully leveraged.

CROWDFUNDING IN THE BANKING INDUSTRY: ADJUSTING TO A DIGITAL ERA

In the aftermath of the global financial crisis, the funding ability of banks has declined resulting in a financial void for riskier enterprises, such as startups and early-stage companies. New financial service providers have emerged in response to the capital deficiency. A particularly prominent incarnation of alternative finance is crowdfunding, where the funding is gathered directly from the market, from several individuals, who invest relatively small sums to compound the target amount. Financial institutions are contemplating the use of crowdfunding, not only for its business implications but also as a preparation for the potential threats it may impose on the traditional finance industry.

REGULATION OF CROWDFUNDING. Equity-based Crowdfunding in Selected Member States of the EU

This dissertation deals with the regulation of crowdfunding, with a focus on equity- based crowdfunding, with the objective to analyze its justifications, proportionality and legal barriers. Through literature review I draw a list of key regulatory risks and related interventions attached to crowdinvesting, concluding that main regulatory issues include information asymmetry, risks of platform failure, retail nature of investors, poor performance of projects or companies, conflicts of interest or data privacy. Conducted legal analysis of the EU financial markets regulation framework, as well as of several Member States, shows significant barriers to the market development, such as lack of clarity on investment services, unsuitable MiFID exemptions, lack of single passport for bespoke regulatory frameworks, lack of harmonization of prospectus requirements for low-value crowdinvesting offerings. Furthermore I undertake empirical research of the largest European equity-based crowdfunding platforms, showing a discrepancy in standards across these platforms. Key findings include lack of standards in conducting due diligence of companies, unclear regulatory positioning or status of the investment services actually provided by the platforms. In the final chapter, I present policy proposals including key elements of bespoke regulation. Finally, I find that optimal regulation of investment- based crowdfunding should recognize its unique risks, which warrants a specific proportionate regulation tailor-made to address crowdfunding as such.

Crowdfunding Financing Model effect on Entrepreneurship Aspirations

IJAAFMR, 2019

The study aimed to measure the effect of Crowdfunding financing on entrepreneurship aspirations in Arabic region. Population consists of members in (15) Crowdfunding Arabic platforms which are working with all models and online at (2018). Descriptive approach and a questionnaire used as a tool for this research. The results showed that Crowdfunding financing effect positively on entrepreneurship aspirations, Crowdfunding used mostly to finance small business or microfinance and charity. Add to that, Crowdfunding leads to financial efficiency and costs reduction, more flexible payments methods and more opportunities for entrepreneurs. The study recommended the importance of entrepreneurship culture and its role in promoting entrepreneurs, the effect off Fintech and various e-banking and e-payments methods, and the need of more interest in innovation and creativity.