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Assessing the Potential for Crowdfunding and Other Forms of Alternative Finance to Support Research and Innovation

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Assessing the Potential for Crowdfunding and Other Forms of Alternative Finance to Support Research and Innovation Assessing the potential for crowdfunding and other forms of alternative finance to support research and innovation Final Report - Annexes January – 2017 EUROPEAN COMMISSION Directorate-General for Research and Innovation Directorate B — Open Innovation and Open Science Unit B.3 — SMEs, Financial Instruments and State Aid Contact: Steve Rogers E-mail: [email protected] [email protected] European Commission B-1049 Brussels EUROPEAN COMMISSION Assessing the potential for crowdfunding and other forms of alternative finance to support research and innovation Final Report - Annexes EY Open Evidence Politecnico di Milano European Crowdfunding Network Directorate-General for Research and Innovation 2017 Access to Risk Finance EUROPEAN COMMISSION EUROPE DIRECT is a service to help you find answers to your questions about the European Union Freephone number (*): 00 800 6 7 8 9 10 11 (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you) LEGAL NOTICE This document has been prepared for the European Commission however it reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. More information on the European Union is available on the internet (http://europa.eu). Luxembourg: Publications Office of the European Union, 2017. PDF ISBN 978-92-79-67772-4 doi: 10.2777/440713 KI-01-16-637-EN-N © European Union, 2017. Reproduction is authorised provided the source is acknowledged. Table of Contents LIST OF TABLES ............................................................................................................ 4 LIST OF FIGURES .......................................................................................................... 4 ANNEX 1 CLASSIFICATION OF QUESTIONS BY OBJECTIVE AND THEME ................................ 7 ANNEX 2 LIST OF THE EUROPEAN PLATFORMS REGISTERED IN THE DATABASE ................. 12 ANNEX 3 PLATFORM DATA ANALYSIS ............................................................................. 24 ANNEX 4 LIST OF PLATFORMS FOR DATA PLATFORM ANALYSIS ........................................ 39 ANNEX 5 TRAINING SET EXTRACTS FOR DATA PLATFORM ANALYSIS AND EXAMPLES OF TEXT CLASSIFICATION ................................................................................................. 40 ANNEX 6 DATA SUMMARY FOR PLATFORM DATA ANALYSIS .............................................. 44 ANNEX 7 ONLINE SURVEYS .......................................................................................... 45 ANNEX 8 INTERVIEWS SUMMARY AND REPORTING ......................................................... 60 ANNEX 9 FOCUS GROUPS - OVERVIEW AND SUMMARY OF FINDINGS ................................ 82 ANNEX 10 CASE STUDIES ............................................................................................ 88 ANNEX 11 COUNTRY FICHES ........................................................................................ 96 ANNEX 12 EXCHANGE RATES ........................................................................................ 98 ANNEX 13 BIBLIOGRAPHY ............................................................................................ 99 3 LIST OF TABLES Table 1 Distribution of the projects by platform .......................................................................... 25 Table 2 R&I projects – An overview .......................................................................................... 27 Table 3 Contribution to R&I projects – Average data ................................................................... 37 Table 4 Average amount raised by platform type, AF type and research or innovation type (€) ........ 38 Table 5 List of performed case studies ...................................................................................... 88 Table 6 Cross- analysis of evidence included in case studies on AF projects ................................... 90 Table 7 Cross- analysis of evidence included in case studies on AF platforms ................................. 92 Table 8 List of countries with country fiches ............................................................................... 96 LIST OF FIGURES Figure 1 R&I AF Trends from 2009-2016 – Worldwide projects ..................................................... 28 Figure 2 R&I AF Trends from 2013-2016 – European projects ...................................................... 29 Figure 3 Type of main Beneficiary of R&I AF projects - Worldwide ................................................ 30 Figure 4 Type of main Beneficiary of R&I AF projects – EU projects .............................................. 31 Figure 5 Type of main beneficiary, EU estimates without Kickstarter data ...................................... 31 Figure 6 Number of European projects ...................................................................................... 32 Figure 7 R&I AF per AF type – Worldwide projects ...................................................................... 32 Figure 8 R&I AF per AF type – European projects ....................................................................... 33 Figure 9 R&I AF per AF type - EU estimates without Kickstarter data ............................................ 33 Figure 10 R&I AF per platform type –Worldwide projects ............................................................. 34 Figure 11 R&I AF per platform type – European projects ............................................................. 34 Figure 12 R&I AF per platform type - EU estimates without Kickstarter data .................................. 35 Figure 13 Share of R&I projects & amount raised by platform type, European projects .................... 35 Figure 14 Research versus Innovation in R&I projects – Worldwide projects .................................. 36 Figure 15 Research versus Innovation in R&I projects – European projects .................................... 36 Figure 16 Distribution of Research vs. Innovation Projects across platform types ............................ 37 Figure 17 Type of funding mechanism ....................................................................................... 46 Figure 18 Type of funding mechanism ....................................................................................... 46 4 Figure 19 Projects funded fields ............................................................................................... 47 Figure 20 Cross-border transaction ........................................................................................... 47 Figure 21 Average type of R&I projects launched as % of total projects ........................................ 48 Figure 22 Average % of R&I projects launched by type of platforms ............................................. 48 Figure 23 Average % of R&I projects launched by funding mechanism .......................................... 49 Figure 24 Type of R&I fundraisers (% of R&I projects) ................................................................ 50 Figure 25 Overall success rate ................................................................................................. 50 Figure 26 Estimate funds raised per typical project ..................................................................... 51 Figure 27 Platforms geographical coverage ................................................................................ 51 Figure 28 Ecosystem ............................................................................................................... 52 Figure 29 Regulation: drivers and barriers ................................................................................. 52 Figure 30 Cross-border: drivers and barriers.............................................................................. 53 Figure 31 Platforms that insure lenders against default risk ......................................................... 53 Figure 32 Type of organisation of the fundraiser ......................................................................... 54 Figure 33 Most common project fields ....................................................................................... 54 Figure 34 Stage of Innovation of the Project .............................................................................. 55 Figure 35 Satisfaction of the fundraisers with their crowdfunding experience ................................. 55 Figure 36 Other sources of finance beforend after crowdfunding ................................................... 56 Figure 37 Desired funding mechanism ....................................................................................... 56 Figure 38 Drivers of a crowdfunding campaign ........................................................................... 57 Figure 39 Barriers of a crowdfunding campaign .......................................................................... 58 Figure 40 User perspectives on information and transparency ...................................................... 58 Figure 41 What platforms should do to attract more investors ...................................................... 59 Figure 42 Differences in the use and potential of AF for research projects and for innovation projects61 Figure 43 AF models and their appropriateness for R&I projects ................................................... 62 Figure 44 AF models and their appropriateness for R&I projects according to innovation eco-system players .........................................................................................................................
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