The Fraunhofer Society has published a report on the crowdfunding sector in Germany during the time of COVID-19.
Fraunhofer states that the year 2020 will “remain in special memories for all of us” as COVID-19 unpredictably changed all of our lives. The research took a closer look at crowdfunding as an alternative form of financing to see how it reacts to unusual social and economic developments like a pandemic. Fraunhofer states that it reviewed all German crowdfunding platforms, 98 in total, and all crowdfunding campaigns from July 8, 2020, to August 17, 2020. The data were evaluated by researchers from the Entrepreneurship Department at TU Darmstadt and the Innovation Financing group at Fraunhofer IMW.
The report states that a total of 1,880 crowdfunding campaigns based on financial support due to the consequences of COVID-19 up to August 17, 2020, were reviewed. Over 89% were successful. StartNext is the largest platform in Germany and the report reviewed 1693 offerings.
In brief, the report states that crowdfunding is complementary to other forms of financing and aided firms before government programs had the chance to step in and provide support during a difficult economic environment. Simultaneously, the report noted that the € 12.76 million documented in the study pale in comparison to the € 13.6 billion in emergency aid provided by the government.
The report is viewable here (in German).