Anja Hagedorn, Andreas Pinkwart

• In the working paper we examine crowdiesting as a new way to fi nance new ventures, which helps to close the early stage equity gap. This way of financing start-ups leaves us some questions: Is crowdiesting able to fi nance new ventures in a sustainable way? Which risks and chances come along with it? Is the method able to establish itself as a basic instrument among others in the financing canon? We answer these questions by analyzing the different forms existing in Germany. To define crowdiesting we first explain the antecedents of it - crowdsourcing and crowdfunding. Then, we present the central crowdiesting platforms in Germany. Afterwards we discuss the use of crowdiestment in the venture financing process and compare crowdiesting with related financing methods. The paper closes with two discussions important for future research: first, the role of motivation and herding behavior and second, the role of trust with regard to the principal-agent problem.