Bachelorarbeit aus dem Jahr 2016 im Fachbereich BWL - Investition und Finanzierung, Note: 2,0, FOM Essen, Hochschule für Oekonomie & Management gemeinnützige GmbH, Hochschulleitung Essen früher Fachhochschule (FOM Hochschule für Oekonomie & Management), Sprache: Deutsch, Abstract: The aim of this paper is to evaluate whether crowdfunding is a realistic form of financing for startups in Europe. Therefore, theoretical principals of startup financing, as well as crowdfunding and its different dimensions, have to be scrutinized further. Moreover, a general overview of the European startup and crowdfunding market has to be provided. This paper focuses on commercial startups located in the member states of the European Union.This paper begins with an introduction of the theoretical principles of startup financing. After a brief definition of startups, the occasions for obtaining financing are pointed out in the context of the life cycle model of a venture. In this regard, traditional forms of startup financing and the related issues are analysed. A more detailed look is also taken on the issue of information asymmetry. Chapter 3 deals with crowdfunding as a source of financing. After an overview of the evolution of crowdfunding, this concept is examined in greater detail. Specifically, the definition and basics of crowdfunding, the main actors and the different forms of crowdfunding are presented. Next, this chapter deals with a typical process of establishing and running a crowdfunding campaign. The end of this chapter deals with the determinants of success of a crowdfunding campaign. In Chapter 4, the European startup and crowdfunding markets are evaluated. Besides facts on these markets, this chapter also deals with insights into the European legal framework in the field of crowdfunding. Moreover, relevant platforms in Europe are presented. The chapter ends with a practical example of a crowdfunding campaign in Europe. In Chapter 5, traditional forms of financing are compared to the relevant types of crowdfunding in Europe. After equity-based crowdfunding is compared to BAs and VCs, lending-based crowdfunding is compared to bank financing. The end of the chapter deals with the comparison of reward-based crowdfunding to financial boot-strapping. In the last chapter, the investigative results are summarized and the achievement of the objective is evaluated. The paper concludes with a prospect of the development of crowdfunding in Europe.
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