Unity is strength in business, including when enterprises are in need of new funding in order to grow. That’s the spirit of crowdfunding, which is becoming increasingly popular as a way of raising funding in the marketplace, particularly among small and medium enterprise. Behind it all lies a philosophy of achieving cost-savings by taking advantage of the crowd, even in funding. Now, even undertakings of larger scope are beginning to make use of crowdfunding, further blurring the boundaries between small-scale and large-scale business, the consequences of which have yet to be fully explored.
A recent university thesis, “Il crowdfunding nei modelli di finanziamento di progetti imprenditoriali” (Crowdfunding in the financial models of corporate projects), presented by Lucia Michela Daniele to the Department of Economics at Seconda Università degli Studi di Napoli, discusses both the theory and the practice of this issue in a clear and thorough manner. Her paper opens with a section on the theory behind crowdfunding before turning to an analysis of the its efficacy and a discussion of the characteristics of corporate undertakings that could benefit from this form of financing.
After a number of pages of definitions, the author takes a look at the opportunities of crowdfunding and related criticisms and describes the technical aspects to be aware of. She then provides a more in-depth analysis of laws, regulations and other aspects related specifically to business development before closing with an overview of the situation in Italy.
In her conclusion, Lucia Michela Daniele explains that, even in Italy, crowdfunding is gaining in popularity for corporate projects, adding that it is not just a passing fad. She notes that the rapid growth in funding volumes worldwide, legislative tensions around the world, and the constant evolution of and experimentation with models to promote innovation confirm that crowdfunding is gradually being seen as a valid alternative in efforts to raise funds, but she clarifies that there are still numerous critical issues that could be said to have been overcome. In other words, the road to modernising the culture of enterprise through crowdfunding remains open, and works like this one by Lucia Michela Daniele can help us to find our way.
Il crowdfunding nei modelli di finanziamento di progetti imprenditoriali
Lucia Michela Daniele
Thesis, Investment Analysis – Department of Economics, Seconda Università degli Studi di Napoli, 2015