Abstract

Equity crowdfunding represents a relatively novel way of alternative funding for entrepreneurial initiatives. The presented paper aims at providing evidence that crowdfunding had developed into an acknowledged, sustainable adequate means of funding and its suitability for investments in commercial real estate projects. For this reason we provide (i) an overview of risks associated with equity crowdfunding from the viewpoint of entrepreneurs, of investors and of platforms, (ii) a selection of equity crowdfunding applications and its industry sectors, (iii) evidence from literature that equity crowdfunding is an acknowledged approach in research which is elaborated on in various scientific disciplines, (iv) an analysis of success factors for crowdfunding campaigns on basis of nine empirical studies, and (v) a detailed discussion of advantages and disadvantages from an investor's viewpoint based on a SWOT analysis.

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