Crowdfunding for SMEs

Abstract

'Crowdfunding for SMEs' provides a valuable insight into this new source of capital. In particular, the authors focus on financial return crowdfunding, which repays the crowd either through debt or equity. This source of capital might play a significant role in the future becoming an alternative or a complement to traditional funding sources. It is therefore of the uttermost importance to understand what has boosted its exponential growth in recent years, as well as the key drivers of success of P2P lending and equity crowdfunding campaigns on both the funders and the fundraisers side. About the Authors; Abbreviations; List of Figures; List of Tables; 1: Introduction; 2: Crowdfunding as a New Phenomenon: Origins, Features and Literature Review; 2.1 Introduction; 2.2 What Is Crowdfunding?; 2.2.1 Features of Financial Return Crowdfunding Platforms; 2.2.2 Motivations for Participation in a Crowdfunding Campaign; 2.2.3 Risks of Crowdfunding; 2.2.4 Crowdfunding Market; 2.3 Literature Review; 2.4 Future Research; 3: Web 2.0 as Platform for the Development of Crowdfunding; 3.1 Introduction; 3.2 Features of Web 2.0 3.3 Crowdsourcing and Crowdfunding: Context, Subjects, and Objects of Exchange3.4 Crowdfunding and Web 2.0: Mutual Interaction and Consequences; 3.5 Questions for the Future; 4: Competitive Frontiers in P2P Lending Crowdfunding; 4.1 Introduction; 4.2 P2P Lending: Types and Business Models; 4.3 P2P Lending Market; 4.4 Conditions Favouring the Growth of  P2P Lending; 4.5 Competitive Advantages of P2P Lending; 4.6 Problems and Risks of P2P Lending; 4.7 Competitive Reactions and Positioning of Banks and Other Financial Institutions 4.8 The Role of Institutional Investors and Internet-Based Service Providers4.9 Conclusions; 5: How to Obtain Credit from Alternative Funding Agents; 5.1 Introduction; 5.2 Literature Review on P2P Lending; 5.3 Analysis of P2P Lending Platforms; 5.3.1 Sample Selection Process; 5.3.2 Methodology and Results; 5.4 Mini-Bonds; 5.5 Conclusion; 6: Competitive Frontiers in Equity Crowdfunding: The Role of Venture Capitalists and Business Angels in the Early-Stage Financing Industry; 6.1 Introduction; 6.2 The Early-Stage Financing Industry: The Funding Gap Issue 6.3 The Main Actors in Early-Stage Financing6.3.1 Equity Crowdfunding; 6.3.2 Informal Investors; 6.3.2.1 Business Angels; 6.3.2.2 Business Angel Networks, Syndicates, Groups and Clubs of Angels; 6.3.2.3 Incubators and Accelerators; 6.4 Institutional Investors; 6.4.1 Venture Capital Firms; 6.4.2 Corporate Venture Capitalists; 6.4.3 Seed Venture Funds; 6.4.4 Private Equity Firms; 6.5 Non-investing Institutions; 6.5.1 Gatekeepers; 6.5.2 Non-profit Foundations; 6.6 Business Angels and Venture Capitalists: A Comparative Analysis 6.6.1 Business Angels and Venture Capitalists: Similarities and Differences6.6.2 Business Angels and Venture Capitalists: Empirical Evidence from the Italian Capital Market; 6.6.2.1 Deals Performed by Institutional Investors; 6.6.2.2 Deals Performed by Institutional Investors and Business Angels in Syndication; 6.6.2.3 Deals Performed Only by Business Angels; 6.7 Conclusions and Policy Suggestions; 7: The Role of Equity Crowdfunding in Financing SMEs: Evidence from a Sample of European Platforms; 7.1 Introduction; 7.2 The Business Model of Equity Crowdfunding Platforms