Do you have an innovative business idea, but lack the financial means to realise it? In recent years, crowdfunding and crowdinvesting have become effective means of raising seed capital for startups in Germany and enhancing their profile. Both forms offer fledgling startups an alternative source of funding and allow them to take the next step in their business history. Find out what crowdfunding and crowdinvesting are and how they differ:
Crowdfunding and crowdinvesting are innovative forms of financing and are particularly suitable for companies such as startups. Yet, their structures differ vastly and in terms of their donor’s expectations.
Crowdfunding: Funding comes from small amounts of money provided by a large number of supporters. They donate mainly because they want to support the idea behind the campaign and usually do not expect anything in return.
Crowdinvesting campaigns, on the other hand, raise money from investors who also want to earn money from the startup later. In return for their investment, they receive e.g., company shares or a share of the profits.
When is a crowdfunding campaign worthwhile for startups?
Crowdfunding is particularly suitable for startups that want to launch new products or creative projects on the market and raise their profile at the same time. It offers an ideal platform for testing the acceptance of your startup on the market, getting feedback from potential customers and building a community. Specialised platforms provide the framework for creating and disseminating your crowdfunding campaign.
This is particularly suitable for startups that require small to medium amounts of capital from a broad base of supporters rather than a few large investors. The online presence should be well thought out and include a minimum amount. If this amount is not reached, the product or project for which the money was raised will not be realised and the backers will receive their money back through the crowdfunding platform.
What is crowdinvesting for companies?
Crowdinvesting benefits startups that need large amounts of capital to expand or develop innovative technology. This type of funding is particularly suitable for companies that have a certain level of market acceptance and are willing to involve investors in long-term value creation. Startups with sustainable business models and high growth potential can also use crowdinvesting to attract strategic partners who believe in the company's success.
Unlike crowdfunding, which tends to involve small amounts of money, crowdinvesting can significantly strengthen a company's financial base by raising equity. This is particularly useful for larger projects, entering new markets or driving complex developments. Startups also benefit from investors who provide capital, expertise and networks to take the business to the next level. Click here to find out more about finding investors.
Crowdfunding information portal
Comprehensive information on the types of crowdfunding, platforms, legal situation and practical tips.
Handelskammer Hamburg
Nordstarter
Crowdfunding platform for projects by artists, creatives and inventors in Hamburg.
Hamburg Kreativ Gesellschaft
Crowdfunding platforms
Networks
Crowdsourcing platforms
Digital platforms can be used to access a group of voluntary supporters who can provide creative input on projects.
Overview crowdsourcing platforms (in german)
Last accessed: December 2024