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The Emergence of Crowdinvesting in Europe


  • Hornuf, Lars
  • Schwienbacher, Armin


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.

Suggested Citation

  • Hornuf, Lars & Schwienbacher, Armin, 2014. "The Emergence of Crowdinvesting in Europe," Discussion Papers in Economics 21388, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenec:21388

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    References listed on IDEAS

    1. Hornuf, Lars & Schwienbacher, Armin, 2014. "Should Securities Regulation Promote Crowdinvesting?," Discussion Papers in Economics 20975, University of Munich, Department of Economics.
    2. Mollick, Ethan, 2014. "The dynamics of crowdfunding: An exploratory study," Journal of Business Venturing, Elsevier, vol. 29(1), pages 1-16.
    3. Reiner Braun & Horst Eidenmüller & Andreas Engert & Lars Hornuf, 2013. "D oes Charter Competition Foster Entrepreneurship? A Difference-in-Difference Approach to European Company Law Reforms," Journal of Common Market Studies, Wiley Blackwell, vol. 51(3), pages 399-415, May.
    4. Douglas Cumming & Sofia Johan, 2013. "Demand-driven securities regulation: evidence from crowdfunding," Venture Capital, Taylor & Francis Journals, vol. 15(4), pages 361-379, October.
    5. Ajay K. Agrawal & Christian Catalini & Avi Goldfarb, 2011. "The Geography of Crowdfunding," NBER Working Papers 16820, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Salahaldin, Linda & Angerer, Martin & Kraus, Sascha & Trabelsi, Donia, 2019. "A duration-based model of crowdfunding project choice," Finance Research Letters, Elsevier, vol. 29(C), pages 404-410.
    2. Bethmann, Nicola & Frieden, Matthias, 2019. "An analytical approach to crowdinvesting: The impact of marketing and idea stealing on the entrepreneur's decision making," Hannover Economic Papers (HEP) dp-649, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    3. Löher, Jonas & Schell, Sabrina & Schneck, Stefan & Werner, Arndt & Moog, Petra, 2015. "Unternehmensgründungen und Crowdinvesting," IfM-Materialien 241, Institut für Mittelstandsforschung (IfM) Bonn.
    4. Kazem Mochkabadi & Christine K. Volkmann, 2020. "Equity crowdfunding: a systematic review of the literature," Small Business Economics, Springer, vol. 54(1), pages 75-118, January.
    5. Murray, Gordon, 2020. "Ten Meditations on (Public) Venture Capital – Revisited," MPRA Paper 104389, University Library of Munich, Germany.
    6. Lars Hornuf & Matthias Neuenkirch, 2017. "Pricing shares in equity crowdfunding," Small Business Economics, Springer, vol. 48(4), pages 795-811, April.
    7. Borello, Giuliana & De Crescenzo, Veronica & Pichler, Flavio, 2019. "Factors for success in European crowdinvesting," Journal of Economics and Business, Elsevier, vol. 106(C).

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    More about this item


    entrepreneurial finance; business finance; crowdinvesting; equity crowdfunding;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

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