The project “CrowdStream – Crowdfunding to stream innovation” aims at improving the effectiveness of public/private business support for innovative enterprises to access qualitative alternative financing.
Why was this deemed a crucial objective for the Danube Region by project partners and the DTP alike? The rise of crowdfunding as an innovative financing tool over the past decade is a result of the on-going digitalisation of processes and communication in our society, with easy access to high-speed internet and digital devices. Moreover crowdfunding (CF) has recently been moved to the forefront in the discussion on access to finance for innovative start-ups and small- and medium-sized enterprises (SMEs).
This is a result of the economic crisis and the associated market failures of the incumbent financial services industry, which provides financing to SMEs. Europeans save their money, rather than assume risk by investing it in small enterprises and they admire established institutions, rather than the entrepreneurs who built them. According to statistics, some 30% of SMEs face liquidity problems and only 30% of SMEs access bank credit at any given time. Plus the availability of bank loans for SMEs has declined by 23% over recent years, while collateral requirements have increased by 34% and interest rates by 54%.
Still, SMEs are the main contributors to job creation and represent some 67% of all jobs in Europe. This drastic lack of funding for SMEs has a visible impact on Europe’s economy and has become a major barrier for driving the energy transition with a broader involvement of local energy stakeholders forward. It is the key reason why we are currently witnessing a lively discussion on crowdfunding, which involves political actors of the highest level, but above all also founders, entrepreneurs, visionaries, and social innovators.
To support the challenging goal of improving the support for the access to alternative financing, CrowdStream brings together a partnership of public and private actors very much experienced in the fields of crowdfunding, start-up financing and innovation support. Pilot actions will enable the partnership to test the framework conditions for the implementation of crowdfunding models for regional innovation support.
Crowdfunding is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet. Crowdfunding is a form of crowdsourcing and of alternative finance. In 2015, it was estimated that worldwide over US$34 billion were raised this way.
Today, crowdfunding is one of the most promising tools to enable economic growth, job creation, and innovation. Crowdfunding is one of the most viable means of funding new ideas, small businesses and jobs across Europe. It is a highly democratic tool that is posed to have a disruptive impact on community, start-up and consumer finance by allowing value creation on many levels, not just financial. Many crowd initiatives already concentrate on innovative start-ups and the project partners use CrowdStream to support Danube area regions to boost the already existing movement as an economic driver for the Danube Region.
Crowdfunding can be a win-win situation for several actors. It provides for an alternative method of financing which can be attractive where borrowers struggle to qualify for full financing from traditional sources, such as banks. Crowd investors on the other hand can invest directly into innovative projects that have not previously been available to retail investors. At the same time the risk for investors and project promoters can be higher through the crowdfunding process. Therefore one of CrowdStream´s overall aims is the development of trans-national quality criteria for Crowdfunding Platforms.
The CrowdStream project will initiate a change in the financing market. Due to quality labelling and capacity building activities there will be a major shift from donation based to equity based crowdfunding.
The main project result will be an improved cooperation between business-support-organisations and enterprises to guarantee a qualitative access to crowdfunding
Therefore CrowdStream will develop with the proper frame to establish crowdfunding as an enabler for the implementation of regional innovative projects by:
- Developing joint quality criteria for all kinds of crowdfunding platforms
- Identifying the legal framework for cross border crowdfunding
- stimulating the collaboration of relevant actors (crowdfunding platforms, regions, regional innovation agencies, public innovation funds, creative industry, media-universities, business incubators, businesses (especially SMEs), social media and the financial industries)
- Providing trainings on CF for the public/private sector
- raising awareness about CF as alternative financing tool in providing relevant information
- Initiating roadmapping process to roll-out innovative financing solutions for innovation in the DANUBE region
- acting as multiplier/disseminator.
- Start date
- End date
- Budget in Euro
- Overall: 1649950
- ERDF Contribution: 1178578,11
- IPA Contribution: 223879,37
- ENI Contribution: 0
- Call number
- Call 1
- Innovative and socially responsible Danube region
- Specific objective
- Improve framework conditions for innovation
|Filename||Date of upload|
|CrowdStream_D 4.2.1 Label granting procedure||15-01-2019 17:01:15|
|CrowdStream_D 4.1.4 Functional specification of online monitoring tool||15-01-2019 17:00:45|
|CrowdStream_D 4.1.3 Categorisation and prioritisation of quality criteria for CF||15-01-2019 16:59:52|
|CrowdStream_D 3-3-1 Online consultation_report||14-01-2019 17:25:53|
|CrowdStream_Crowdfunding Visions_Danube Region||15-06-2018 13:49:04|
|CrowdStream_Crowdfunding Visions_Bulgaria||15-06-2018 13:50:22|
|CrowdStream_Crowdfunding Visions_Czech Republic||15-06-2018 13:51:12|
|CrowdStream_Crowdfunding Visions_Croatia||15-06-2018 13:51:51|
|CrowdStream_Crowdfunding Visions_Hungary||15-06-2018 13:52:30|
|CrowdStream_Crowdfunding Visions_Slovenia||15-06-2018 13:53:42|
|CrowdStream_Crowdfunding Visions_Serbia||19-06-2018 15:44:26|
|CrowdStream_Crowdfunding Visions_Austria||19-06-2018 15:50:18|
|CrowdStream_Crowdfunding Visions_Slovakia||27-07-2018 13:42:57|
|CrowdStream_Crowdfunding Visions_Montenegro||27-07-2018 13:55:42|
|Agency for European Intergration and Economic Development||Lead email@example.com||Austria|
|South Bohemian Agency for Support to Innovative Enterprising||ERDF firstname.lastname@example.org||Czech Republic|
|ConPlusUltra Ltd.||ERDF email@example.com||Austria|
|Pannon Business Network Association||ERDF firstname.lastname@example.org||Hungary|
|DEVELOPMENT AGENCY ZAGREB - TPZ Ltd.||ERDF email@example.com||Croatia|
The 15th Joint Steering and Working Group Meeting of the EUSDR Priority Area 8 took place on December 19, 2018 in Stuttgart, Germany. The focus was the revision of the EUSDR Action Plan, introduction of the Danube Strategy Point and discussions...
Within the Crowdstream project, International Crowdfunding Conference was organised on December 12th 2018, in Zagreb, Croatia by Zagreb Innovation Centre (ZICER). Main discussion was related to the possibilities and opportunities of...
With a view to efficiently implement project promotion activities within WP2 (C), the partnership implemented a production of a pitching video for CrowdStream outputs (with emphasised outputs of WP5/T3 and WP6/T4). The video represents a...
On November 26th 2018, a Brokerage event in the framework of project Made in Danube took place in Nitra. The matchmaking event brought together SMEs representatives, R&D institutions and academia interested in smart and innovative precision...
On the 19th of November 2018, a third CrowdStream training session took place as part of the SMARTUP Initiative initiated by the City of St. Pölten, Austria. On this occasion, the Townhall Square in St. Pölten was transformed into an “Innovation...