How to make crowdfunding work in Europe. Bruegel Policy Contribution Issue n˚6 | March 2019

Chervyakov, Dmitry and Rocholl, Jörg (2019) How to make crowdfunding work in Europe. Bruegel Policy Contribution Issue n˚6 | March 2019. [Policy Paper]

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Abstract

Crowdfunding markets around the world have experienced significant growth rates in recent years. With an aggregate amount of almost €50 billion raised worldwide between 2010 and 2017, crowdfunding has attracted increasing economic, political and regulatory attention on the international level. However, many questions remain open on the proper design, implementation and feasibility of these markets, of which there are four general types: debt, rewards, equity, and charity (ranked by their respective volumes). The first three types of crowdfunding are comparable to existing sources of traditional financing and either complement or substitute for these sources. Investors thus expect returns or other financial benefits from these types of crowdfunding. The fourth type – charity-based crowdfunding – is purely philanthropic.

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