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First Evidence on Crowd Investing in Germany

Author

Listed:
  • Jarko Fidrmuc

    (Zeppelin University, Friedrichshafen, Germany
    School of Economics, Henan University, Kaifeng, China
    Institute of East and Southeast European Studies (IOS), Regensburg, Germany)

  • Adrian Louis

    (Zeppelin University, Friedrichshafen, Germany)

Abstract

Crowd investing has recently become an interesting possibility for young entrepreneurs to finance the start-up of new firms. This paper analyses the impact of education and gender of young entrepreneurs who finance their start-ups using a crowd investing platform. We analyse the crowd investing projects financed through the Companisto and Seedmatch platforms, which are the main crowd investing platforms in Germany. The study confirms that the majority of founders of crowd investing start-ups completed a university education. However, we find a surprisingly low-rate of female founders in crowd investing, although the gender structure do not influence the amount of crowd investing. Thus, the crowd investing does not facilitate the access to finance for new groups of entrepreneurs, but it rather facilitates the financing conditions for founders, who could also obtain a credit from the bank.

Suggested Citation

  • Jarko Fidrmuc & Adrian Louis, 2015. "First Evidence on Crowd Investing in Germany," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 1(1), pages 36-42.
    • Handle: RePEc:men:journl:v:1:y:2015:i:1:p:36-42
    DOI: 10.11118/ejobsat.v1i1.36
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    References listed on IDEAS

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    1. Nataliya Barasinska & Dorothea Schäfer, 2014. "Is Crowdfunding Different? Evidence on the Relation between Gender and Funding Success from a German Peer-to-Peer Lending Platform," German Economic Review, Verein für Socialpolitik, vol. 15(4), pages 436-452, November.
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    More about this item

    Keywords

    crowdfunding; entrepreneurial nance; donations; venture capital;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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