A Comparison and Assessment of acquiring Funds of Corporate Entities through Crowdfunding and trough a Bank Credit

Abstract

Crowdfunding is a new way of acquiring funds through the internet. For start-up companies, however, various other sources of funds are available. These include inter alia venture capitalist, banks and business angels. The aim of this paper is to compare the processes of a company acquiring funds through crowdfunding and through a bank credit. This is made on the basis of the transaction cost theory. In addition, general advantages and disadvantages of both concepts are displayed.