Crowdequity and Crowdlending: two alternative funding solutions for entrepreneurial ventures. The case of the French firm Gifts for change

Imen Mejri, Malek Hamouda and Donia Trabelsi ()
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Imen Mejri: NEOMA - Neoma Business School
Malek Hamouda: ISG - ISG Programme Business & Management (IONIS Education Group)
Donia Trabelsi: IMT-BS - DEFI - Département Droit, Économie et Finances - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - TEM - Télécom Ecole de Management

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Abstract: Financial return crowdfunding (crowdlending and equity crowdfunding) has thrived in recent years. It is proposed as an alternative solution to the problem of funding entrepreneurial ventures. This research studies the advantages and drawbacks of financial return crowdfunding, compared with traditional funding. It highlights the special features of crowdlending and equity crowdfunding. The study is based on the case of the firm Gifts for Change - Treez, which is distinctive in that it was funded by both types of financial return crowdfunding. Our analysis shows that financial return crowdfunding uses different mechanisms that are only appropriate for certain projects. Thus, the choice between crowdlending and equity crowdfunding does not arise at the same stage of the firm's development. We also make several recommendations, based on our study, for entrepreneurs hoping to obtain funding via financial return crowdfunding.

Keywords: Advantages; Crowdlending; Equity crowdfunding; Financial return crowdfunding; Drawbacks (search for similar items in EconPapers)
Date: 2017-11-27
Note: View the original document on HAL open archive server: https://hal.science/hal-02373765v1
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Published in IE 2017 : 7th Annual International Conference on Innovation and Entrepreneurship, Nov 2017, Singapore, Singapore

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