Naslov
Equity crowdfunding

Autori
Blaće Matija, Grubišić Anita

Izvornik
Managerial Issues in Modern Business (1849-7535) 1 (2017), 1; 443-450

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
Equity crowdfunding, financing, innovation, regulation, investment security

Sažetak
Equity crowdfunding is an exciting new development on the financial market, allowing a wide range of investors to acquire equity in a company through an internet platform. Yet, due to the inherent complications of the model, which is traditionally heavily regulated by various legal restrictions, it is the slowest growing of the four most eminent crowdfunding models to gain widespread recognition. Advantages of equity crowdfunding are greater financing options and lower fixed costs as opposed to going public with an IPO, while the biggest disadvantage to investors is the information asymmetry and therefore the danger of a false or fraudulent investment. As the financial regulations for investments went in the direction of increased investor security following the economic crisis of 2007, such development seemingly impaired the development of equity crowdfunding. Today, two opposing visions of crowdfunding development can be seen – regulation camp, seeking to increase the legal restrictions for investments and therefore provide additional security, and liberal camp, seeking to lift the restrictions and therefore improve access to this new innovative source of financing. The clash is nowhere more obvious than in the development of equity crowdfunding. Where direct investments are restricted, new innovative ways to circumvent them were invented. Given the inherent international potential of internet platforms and therefore crowdfunding in general, differentiating legal regulation, especially noticeable on the EU level, prevents the crowdfunding from reaching its full potential. This paper will analyse the advantages and disadvantages of the equity crowdfunding, analyse the regulation on the main crowdfunding markets, gather research data from public sources and conclude that the countries which regulated and allowed investments through the equity crowdfunding model have better chances of successfully funding SME and startup companies through providing alternative financing option of equity crowdfunding.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija, Interdisciplinarne društvene znanosti

POVEZANOST RADA