# Crowdfunding (so also said in German; more rarely public financing)

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- Post ID: 590226
- Modified: 2023-07-25T20:59:46+00:00
- Language: en

## Definition

The raising of money to finance investments of any kind - but especially the creation of new products and the realization of other extraordinary market activities - from a very large number of small investors. Providers and demanders come together via platforms on the Internet. In detail, a distinction is made between - donation-based crowdfunding: here, the public donates money within a certain period of time for a specific project without receiving anything in return, - counter-performance-based crowdfunding: the donors receive a non-monetary recognition, such as the mention of their name in the credits of a film or a personal gift from the artist whose work was co-financed, - credit-based crowdfunding: the donors receive the promise that the amount will be repaid with or without interest, and - crowdinvesting: the donor receives a share in the future profit of the financed project, resp. if the margin is linked to securities purchases, shares or a debt certificate. On May 14, 2007, the German Federal Financial Supervisory Authority published a fact sheet entitled "Hinweise zur Erlaubnispflicht der Betreiber und Nutzer einer internetbasierten Kreditvermittlungsplattform nach dem KWG." - See eLolly, investment club, credit cooperative, credit intermediation platform, peer-to-peer lending, social lending platform. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1