The financing process of equity-based crowdfunding: An empirical analysis

Equity-based crowdfunding is a relatively new method to obtain capital for start-ups. Hereby ventures use special Internet platforms to issue shares of different sorts to the public. However, a great variety of platforms exist, which leads us to the question of whether there is a general crowdfunding process enabling founders to finance their business or not. If we knew of a general model, we could give recommendations to founders, service providers and investors. Therefore, in this article, we analyse the process of equity-based crowdfunding from the perspective of a capital seeker and ask how the process of equity-based crowdfunding is structured in practice. We answer this question by conducting an explorative analysis consisting of an iterative examination of the 16 different platforms existing in Germany. By doing so, we aim to identify commonalities and differences and derive a general model. The findings will be used for further discussion and provide information for stakeholders in order to optimize the process.