Access to capital is one of the main problems faced by entrepreneurs and startups in the early stages of their business development. Most don't have sufficient collateral or cash flow to get financing from traditional institutions.
At this juncture, alternative financing emerged as a solution that today has grown by around €600 million per year. However, the context and particularities of each country directly affect the dynamics of the entrepreneurial ecosystem and consequently the presence and effectiveness of funding structures.
The Brazilian market suffers from a lack of capital offers. In terms of capital per startup, São Paulo offers only 29% of the global average, while Berlin offers almost 200% of the global average .
In this scenario, the objective of this project was to study the main German fintech ecosystems, analyzing them with a focus on access to capital and their quality in addition to of regulatory instruments and how they can contribute to market development without threatening financial stability.
From October 2020 to February 2022 I conducted this research in partnership with the German Association of Crowdfunding and support from Alexander von Humboldt Foundation through the German Chancellor Fellowship program.
Participating in episode 12 of “As fintechs – Novas formas de investir”
Crowdfunding article published on the Portal do Bitcoin
Participating in the Live about the German Chancellor Fellowship
Post on the German Crowdfunding Association website
Alexander von Humboldt Foundation Brochure 2020/2021
Where does crowdfunding sit in the financial growth cycle?
There is a linear relationship between the sources of funds and the development's stages of a startup, and each type of funding is a function of this stage.
Donation-based crowdfunding can sometimes resemble self-funding. Reward-based crowdfunding is more similar to supplier financing, while crowdlending is more similar to bank financing.
Finally, equity-based crowdfunding resembles venture capital funding.
Post on the German Crowdfunding Association website
Presentation on the German INVEST program
Webinar on the German INVEST program
The alternative financing market in Brazil – Agents
The alternative financing market in Germany – Agents
Moderating panel on German innovation
Respect – Virtually dancing with my Humboldtian colleagues
Brazil-Germany Fintech Reception – Frankfurt am Main
Brazil-Germany Fintech eTour
Presentation on alternative German funding instruments
Brazil-Germany Fintech eTour
Visit of the Brazilian cohort at the Brazilian Embassy in Berlin
Meeting with Angela Merkel
Meeting with Claudia Rankers, one of the authors of the book “Nachhaltigkeit Frauen Schaffen Zukunft”
TEDx Talk
Post on the German Crowdfunding Association website
Post about Tokenizations and Crowdinvestments
Official release of the report: “Alternative Financing in Fintech Markets – A Look at the German and Brazilian Entrepreneurial Ecosystems”
This report consolidates this 17-month in-depth investigation of the German alternative financing market. I had the opportunity to interview fascinating people at German and Brazilian fintechs and include their stories in special sections.
Click on the image above to access the full report.