Glossary

Compartmentalisation refers to the targeted separation of assets and business activities through the use of complex corporate structures such as letterbox companies, holding companies or trusts. The aim of this strategy is to minimise financial risks and protect personal assets from legal claims or operating losses. Assets are distributed across several legally independent units so that in the event of a financial problem in one unit, the entire assets cannot be accessed automatically. This form of compartmentalisation is particularly common in the international corporate sector and can be legally permissible, provided it complies with tax and company law regulations. However, critics criticise the fact that such structures can also be misused to conceal economic responsibilities and circumvent regulatory obligations.

Equity crowdfunding, also known as equity crowdfunding, is a form of swarm financing in which investors receive shares or company shares in return for their financial investment in the company. In contrast to traditional crowdfunding models, where supporters often only receive non-cash rewards or advance access to products, investors in equity crowdfunding can benefit from a potential increase in the value of the company and future dividends. This form of financing has become particularly important for start-ups and smaller companies, as it enables flexible capital raising without borrowing and at the same time spreads the entrepreneurial risk. In return, investors have the opportunity to acquire shares in high-growth companies at an early stage, which can enable high returns - but also harbours the risk of a total loss. In many countries, equity crowdfunding is regulated by law to ensure investor protection, as it is a riskier form of investment.

An angel investor is a wealthy private individual who supports start-ups or young companies by providing capital, usually in exchange for shares in the company or a stake in the company. Equity capital. These are often experienced business people or entrepreneurs who contribute not only financial resources, but also their network, industry knowledge and strategic advice to promote the growth of the company. Angel investors typically get involved in the early stages of a company, when the risk is high but access to traditional sources of financing is often limited. They therefore play a decisive role in start-up financing and offer young companies the opportunity to bring their ideas to market maturity.

An investor portal is an online platform that enables investors to invest in various crowdfunding projects and continuously monitor their progress. These portals serve as an interface between companies in need of capital and private and institutional investors looking for investment opportunities. In addition to crowdfunding projects, many investor portals also offer other financial products, such as property investments or start-up investments. By providing comprehensive information and regular updates on the projects in which they have invested, investors receive a transparent overview of the development of their investments. Investor portals are often subject to regulatory requirements to ensure the security of transactions and investor protection.

Anonymity is a characteristic feature of letterbox companies that enables the owners to conceal their identity and thus take advantage of both legal and tax benefits. Letterbox companies are often registered in countries that have strict data protection laws and limited information obligations towards authorities. This allows the actual owners to remain unrecognised, as the company only functions as a legal shell without its own business operations. This anonymity can offer strategic advantages, for example to protect privacy or conceal assets. However, the use of letterbox companies is increasingly the focus of regulatory authorities worldwide, as they can also be misused for tax avoidance or evasion.

Call forwarding refers to the function of automatically diverting incoming telephone calls to an alternative telephone number or another person. This technology enables companies and individuals to make and receive calls at any time. remain reachable regardless of location. Especially in virtual offices or when working remotely, call forwarding offers a flexible solution to ensure that no important call is missed. In practice, call forwarding can often be customised, e.g. by forwarding calls according to set schedules or when lines are busy, and is used in both private and business environments.

The address service is a service that provides companies with an official business address without having to be physically present. This service is often used in conjunction with with virtual office services and allows companies to use a professional address for business communications, company listings and mailings. The address service is particularly suitable for small companies, start-ups and freelancers who want to protect their private address or have a presence in certain regions without having to rent an actual office. This service is often combined with other services such as mail forwarding and secretarial services.

Work ergonomics is the science and practice of optimising the design of workplaces and working conditions in order to promote the health, efficiency and well-being of employees. They includes aspects such as adapting furniture, equipment and lighting as well as designing work processes to minimise physical strain and stress. Work ergonomics also play an important role in virtual office environments, for example by incorporating ergonomic home office equipment and break management. A well-designed ergonomic environment can not only reduce health complaints, but also increase productivity and job satisfaction.

Workplace sharing describes the concept of using office workplaces flexibly by sharing them between different people or teams. Instead of having permanently assigned offices or desks employees can book workstations as required, which is often done via digital booking systems. This model optimises the use of office space and reduces costs by enabling companies to respond to changing work requirements. Workplace sharing is particularly prevalent in modern, hybrid working environments as it promotes flexibility and gives employees the choice to be on site only when their work requires it.

Asset protection refers to a strategic concept for securing assets against access by creditors or legal claims. The aim of these measures is to protect the personal or business assets from financial risks. Legal constructs such as offshore structures, trusts or letterbox companies are often used, which create a geographical and legal distance from the country of residence of the asset owner and thus make it more difficult for third parties to gain access. Although asset protection is legal in principle, the use of such structures is subject to strict legal regulations. Provided the measures do not violate tax or legal regulations, asset protection can be an effective strategy for entrepreneurs, investors or wealthy private individuals to secure their assets in the long term.

The duty of supervision refers to the legal and regulatory obligation to monitor and protect the interests of investors in crowdfunding projects. This duty aims to, to ensure that investors are protected against unforeseen risks and possible misconduct on the part of capital recipients through transparent information and regulated processes. Regulatory authorities and platform operators take on key tasks here, such as reviewing projects, complying with legal standards and providing relevant financial information. The duty of supervision thus serves to ensure the safety of investors and promotes trust in crowdfunding as a serious form of investment.

Foreign company formation describes the process of founding a company in a country other than the founder's home country. This procedure is often chosen in order to tax advantages, lower regulatory requirements or a business-friendly legal environment. Countries that offer favourable tax rates or flexible regulations often attract entrepreneurs who want to reduce their operating costs or simplify their legal obligations. Typical destinations for foreign company formations are so-called "tax havens" or countries with pronounced economic liberalisation. However, such start-ups are bound by the respective legislation of the target country and require precise knowledge of international taxation and compliance requirements in order to avoid legal risks.

A foreign bank account is an account opened by companies, including shell companies, in another jurisdiction. It is often used to fulfil tax or legal advantages. Companies and private individuals use foreign accounts to benefit from lower tax rates, fewer regulatory requirements or better data protection laws. Letterbox companies often use foreign bank accounts to manage income and expenses outside their home country, which can make transparency more difficult for national tax authorities. While such accounts are used for legitimate business reasons, they are also under critical scrutiny as they can potentially contribute to tax avoidance.

Reward crowdfunding is a form of crowdfunding in which investors receive a service or reward from the project initiator in return for their financial support. In contrast With equity crowdfunding, supporters do not acquire shares in the company, but instead receive products, services, exclusive content or special experiences as a thank you for their investment. This form of crowdfunding is particularly popular in the creative industries, with start-ups and for innovative product ideas, as it enables direct financing by interested consumers and at the same time gains initial customers for the product. Reward crowdfunding offers project initiators an opportunity to test market demand and generate capital for the realisation of their ideas, while supporters receive early access to products or limited editions.

Equity capital is a form of financing in which investors contribute capital to a company and receive a stake in return. This type of financing is often made possible by crowdfunding models in which a large number of small investors invest in a company and acquire shares in it. In contrast to traditional loans, equity capital does not offer any fixed repayment obligations. Instead, investors benefit from a potential increase in the value of the company or from profit distributions. Equity capital is an attractive source of financing for young companies and start-ups as it strengthens equity and can attract long-term strategic partners.

A letterbox address is the official postal address of a so-called letterbox company, which is often set up in another country in order to take advantage of tax benefits. These companies do not usually have physical offices or operational activities at the specified location, but only use the address for legal and administrative purposes. Mailbox addresses are often registered in countries or regions with favourable tax laws in order to minimise corporate taxes. Whilst legal, such constructs are often under scrutiny due to potential tax avoidance. The letterbox address allows companies to establish a formal presence in the respective country without being active there.

Accounting management refers to the process of systematically managing, recording and documenting a company's financial transactions. It encompasses all accounting tasks, including the recording of revenue and expenses, preparing financial reports and ensuring tax and legal compliance. For letterbox companies, accounting management is often handled by specialised service providers. These providers ensure that the company's financial activities comply with legal requirements and are documented correctly for tax purposes, even if the company is based in another country. Effective accounting management is essential for the transparency and legal certainty of companies, regardless of their location or business model.

An office address is the address of a virtual office that entrepreneurs and freelancers can use to present their business professionally without having to maintain a physical location. rent. It serves as an official business address and can be used for company registration, customer contact and communication with authorities. This service enables companies to establish their presence in attractive business neighbourhoods, which can have a positive impact on the company's image. An office address thus offers a professional and cost-effective solution, especially for small businesses, start-ups and digital nomads who do not need a permanent office facility but still want a prestigious address for business purposes.

Office services include a variety of services offered by virtual offices to provide companies and freelancers with flexible and cost-effective work opportunities. The typical Services include call forwarding, mail service and the provision of conference rooms. These services make it possible to maintain a professional presence even without physical business premises. By utilising office services, companies can outsource their administrative tasks, which often leads to increased efficiency and a more flexible working day. Especially in today's digital working world, such services are a sought-after solution for start-ups, small businesses and freelancers who want to utilise professional office resources without the commitment of having their own office.

A shared office is a jointly used office space in which several independent entrepreneurs and companies work together without being organisationally linked. It offers a cost-effective alternative to the traditional individual office and at the same time creates a dynamic working environment. The physical proximity often creates valuable networking opportunities and the exchange of expertise between those involved. Shared offices also offer shared resources such as conference rooms, printers and kitchen areas, which increases efficiency and reduces costs. This type of working model is particularly suitable for freelancers, start-ups and small companies who want to benefit from an inspiring environment and a flexible rental structure.

Business angels are experienced investors who invest capital in start-ups and young companies in order to promote their growth. In addition to financial support, they often also offer their entrepreneurial expertise, industry knowledge and valuable contacts. These investors are often personally involved in the company and support the founders as mentors. Business angels play an important role in the start-up ecosystem as they invest in early stages where traditional financing options such as bank loans or venture capital are often difficult to access. Their support can be crucial to the success of a company as they provide not only financial resources but also strategic impetus and access to networks.

A campaign in the context of crowdfunding is a targeted action to raise financial support for a project via crowdfunding platforms such as Kickstarter, GoFundMe or Indiegogo. collect. These campaigns are carefully structured marketing and communication measures aimed at publicising the project, convincing potential supporters and achieving the set funding target. A successful campaign comprises various elements, including a clear objective, a convincing project description, appealing visual content such as videos or images, as well as regular updates and rewards for supporters. The campaign is also promoted through social media, email marketing and other channels in order to reach as many interested parties as possible. A well thought-out campaign is crucial to the success of a crowdfunding project, as it builds trust and encourages supporter engagement.

Cloud services, or cloud computing services, refer to an infrastructure in which computing resources such as storage, applications and networks are provided over the internet. Instead of Instead of storing files locally on their own computer or running applications locally, companies and private individuals use cloud services to enable location-independent access. These services are flexibly scalable and can usually be used as required, which is particularly advantageous for mobile workstations and virtual offices. Common cloud services include storage solutions such as Google Drive or Dropbox, platforms for shared document processing such as Microsoft 365, as well as infrastructures for software development and data analysis. The use of cloud services offers numerous advantages such as increased data security, cost savings and high availability of resources. Security and data protection remain key issues, as the stored data is stored on centralised servers of a third-party provider via the internet and requires appropriate security measures.

Company formation refers to the process of setting up a company, which includes all the legal and administrative steps involved in bringing a new company into being. This process varies depending on the country and can include both the submission of founding documents and registration with the relevant authorities. Company formation plays a particularly important role in an international context, as companies are often founded in jurisdictions that offer favourable legal and tax conditions. Part of company formation are letterbox companies, which are established in countries with favourable tax regulations or less stringent disclosure requirements. Although these structures are often used for tax optimisation, they are the focus of regulatory authorities to prevent abuse for money laundering or tax evasion. Therefore, many company formation processes today include strict compliance requirements to ensure transparency and legality.

Compliance refers to the adherence to legal requirements, internal guidelines and ethical standards that companies and organisations must follow. The aim of compliance is to act in a legally compliant and ethical manner. correct behaviour and to minimise legal and financial risks. Compliance requirements cover various areas such as data protection, anti-corruption, financial transparency and environmental protection. Compliance is particularly relevant in the context of letterbox companies, as these are often used for tax avoidance or non-transparent financial transactions. In order to prevent abuse, there are extensive regulations for monitoring such companies, such as the obligation to document and disclose ownership structures. Through audits and compliance programmes, companies ensure that they adhere to national and international standards and build trust with customers, partners and authorities.

Corporate governance refers to a set of rules for the responsible management and control of companies. It comprises guidelines and processes that ensure that a company is managed transparently, efficiently and is managed in the interests of all stakeholders - including shareholders, employees, customers and the public. Corporate governance aims to combine ethical principles, economic efficiency and long-term success. Key elements of corporate governance are a clear separation of decision-making and control functions, transparency obligations, risk management and the protection of shareholder rights. A solid corporate governance system strengthens trust in the company and reduces the risk of misconduct and conflicts of interest. Many countries and sectors have developed specific corporate governance codes that companies should observe in order to align their management and supervisory structures with responsible corporate governance.

Coworking is a work concept in which individuals, start-ups or companies use shared workspaces, so-called coworking spaces. These spaces are equipped with modern work infrastructures and enable users to flexibly access workstations, conference rooms, office equipment and often also virtual offices. A major advantage of coworking spaces is their networking potential: they offer an environment in which freelancers, creative professionals and companies can meet and collaborate. This promotes the exchange of ideas and enables synergies that rarely arise in a traditional office. For many companies and freelancers, coworking is a cost-effective alternative to a permanent office and supports location-independent working, which is becoming increasingly important.

Crowdinvesting is a form of financing that enables private individuals to invest in companies or projects and receive shares or participations in return. Unlike traditional Crowdfunding, where supporters often only receive symbolic consideration, investors in crowdinvesting benefit financially - be it through dividends, profit sharing or a share in the value of the company. Specialised crowdinvesting platforms such as Seedmatch or Companisto enable start-ups and growth companies to raise capital from many small investors without having to rely on traditional bank loans. This type of financing offers investors the opportunity to participate in promising projects at an early stage, but it is associated with increased risks, as start-ups often have an uncertain future. Crowdinvesting has established itself as an innovative financing alternative and is increasingly being utilised both in Germany and worldwide.

Crowdsourcing describes the practice of outsourcing tasks, projects or problem solutions to a broad, often internet-based group of people instead of working on them internally. This method enables enables companies and organisations to use the creativity, knowledge and skills of the "crowd" - a large number of volunteers or paid individuals - to obtain innovative ideas, specific expertise or quick solutions. Crowdsourcing is used in many areas, including product development, design, marketing and data analysis. It offers companies flexibility and access to a larger talent pool without having to hire permanent employees. Crowdsourcing is often combined with crowdfunding to not only gain funding, but also valuable feedback, creative input and early market research. Well-known platforms such as Amazon Mechanical Turk, 99designs and Upwork offer structured crowdsourcing for various industries and projects.

Customer Relationship Management (CRM) refers to systems and strategies for managing and improving customer relationships. A CRM system centralises customer data and enables companies to manage interactions and manage and optimise communication processes with existing and potential customers in a targeted manner. Modern CRM solutions are often cloud-based, which enables location-independent access and is particularly beneficial for virtual offices or mobile working environments. With centralised access to customer data and communication histories, teams can work together more efficiently, plan sales processes better and address customer needs in a targeted manner. Well-known cloud-based CRM platforms such as Salesforce, HubSpot and Microsoft Dynamics offer comprehensive tools for sales, marketing and customer service. CRM systems therefore make a significant contribution to improving customer satisfaction and customer loyalty and strengthen customer relationships in the long term.

An umbrella company, also known as a holding company, is a superordinate organisation that unites several subsidiaries or holdings under its umbrella. This structure usually serves The purpose of holding companies is to exploit tax advantages, minimise risks and manage strategic decisions in a centralised manner. Holding companies often act as administrative units and influence overarching business strategies, while operational activities usually remain with the individual subsidiaries. Umbrella companies are often found in complex corporate groups, where they control and monitor the flow of capital and assets.

Data protection encompasses all measures and regulations that ensure the protection of personal data. Companies, public authorities and individuals are obliged to protect the privacy and security of data. especially when it comes to personal information. Data protection guidelines define how data may be collected, processed, stored and forwarded in order to prevent misuse and unauthorised access. A central component of data protection in the European Union is the General Data Protection Regulation (GDPR), which came into force in May 2018. It sets out clear requirements for the handling of personal data and gives data subjects far-reaching rights, such as the right to access, rectify and erase their data. Virtual offices and companies working digitally are also obliged to take measures to implement these requirements. These measures range from the encryption of sensitive information to access controls and regular employee training.

Delegated investments are capital investments in which investors invest in projects via crowdfunding platforms and transfer part of their decision-making power to the platform or to third-party investors. transferred. This model enables retail and institutional investors to invest in various projects without being directly involved in the selection or management of the investments. The platforms that facilitate such investments often take over the review and selection of projects, define investment criteria and assume risk management. They act as a link between the investors and the project operators. Delegated investments offer an opportunity for diversification and facilitate access to forms of investment that would otherwise require higher financial hurdles or specific expertise.

Diversification is a strategy for spreading risk by distributing capital across different projects, sectors or asset classes in order to minimise the risk of losses and to minimise the risk of losses. achieve a more stable return. Diversification plays a key role in crowdfunding in particular: investors can divide their capital between different projects, making them less dependent on the performance of individual investments. Diversification reduces risk, as the failure of a single project has less impact on the entire investment portfolio. This strategy is suitable for both private and institutional investors, who can thus hedge their investments against market fluctuations and specific project risks.

Document management refers to the administration and organisation of documents within a company or organisation. Document management plays a crucial role, especially in virtual offices, in order to to enable paperless workflows and ensure secure and efficient access to documents. A modern document management system (DMS) often includes digital functions such as the central storage, categorisation and indexing of documents as well as access controls that ensure that only authorised persons can view or edit certain files. These systems help to speed up work processes, improve data security and reduce the administrative burden.

Domiciliation is a service whereby companies provide an official address in another country or city in order to obtain tax or business benefits. obtain a registered office. This is often made possible by third-party providers who provide addresses and basic office services so that the company can be legally managed at this location without actually operating there. Domiciliation is particularly common with so-called letterbox companies, which often do not carry out any significant business activities at the stated location. The reasons for domiciliation can vary, but often include the optimisation of tax burdens, access to international markets or a more prestigious business address.

Third-party financing refers to the procurement of capital from external investors such as venture capital providers, business angels or crowdfunding participants. This form of financing is particularly popular with start-up ups and new business projects that are dependent on additional funding for their development and growth. Third-party financing offers young companies an alternative to self-financing and enables them to realise their projects without taking out bank loans. In addition to capital, investors often also contribute valuable industry expertise and networks, which can increase the company's probability of success. Crowdfunding also enables small investors to participate in innovative projects, allowing a broad investor base to be built up.

Due diligence is a comprehensive review process that is carried out before an investment, acquisition or business partnership in order to assess the financial, legal and operational situation of a company. evaluate. The aim of due diligence is to identify potential risks and opportunities and to improve the basis for decision-making for investors or business partners. As part of the due diligence process, detailed information about the company's finances, business model, market position, legal obligations and any liabilities are examined. The process often includes financial and tax analyses, legal reviews and an assessment of operational efficiency and management structure. In this way, due diligence helps to minimise potential risks and ensure the long-term success of a business transaction.

An e-commerce office service is a virtual service that is specifically tailored to the needs of e-commerce companies and outsources administrative tasks. This service takes on tasks such as processing mail, answering and forwarding customer calls, organising appointments and handling returns. E-commerce office services offer small and medium-sized online retailers in particular the advantage of being able to concentrate on their core business while routine tasks are handled by experienced service providers. This type of service is particularly valuable for companies without their own office infrastructure, as it can provide a professional external image as well as a fixed business address. By using e-commerce office services, companies can not only save costs, but also increase customer satisfaction and the efficiency of their business processes.

e-Residency is a digital concept that enables people worldwide to obtain a virtual residence authorisation in a country without being physically present. This system allows entrepreneurs to set up and manage a business completely online and access it from anywhere in the world. It thus offers a solution for location-independent business management and provides access to digital services and the legal framework of the respective country. Estonia is considered a pioneer of e-residency and has been offering the programme since 2014. Through a secure digital identity, e-Residents gain access to Estonian e-government services, enabling them, for example, to set up a business, open bank accounts and fulfil tax obligations. e-Residency does not, however, constitute citizenship or a residence permit in the traditional sense, nor does it entitle the holder to physically enter or live in the country. This model is particularly attractive for digital nomads, freelancers and start-ups seeking an international market presence without having to be physically present in a particular country.

Income from capital assets are gains realised from the investment of capital and include dividends, interest and capital gains from securities. This includes Income generated by investments in companies as part of equity crowdfunding is also taxable. This income is taxable in many countries and is often subject to capital gains tax. In the case of investments in forms of participation such as shares or equity crowdfunding, income from capital assets can arise from dividends or from the sale of company shares in the event of an exit. Capital gains are generally subject to final withholding tax, which means that a fixed tax is levied directly on the income. In Germany, for example, the flat tax rate on capital gains is 25 %, plus solidarity surcharge and church tax if applicable. Income from capital assets is therefore an important factor that investors must take into account when planning and assessing their financial returns.

Deposit protection is a protective measure that ensures that investors' funds are protected up to a certain amount in the event that the company in which they have invested becomes insolvent. goes. In traditional banks, deposit protection is regulated by law and protects savings up to a certain amount. In the crowdfunding sector, however, there is no mandatory deposit protection; some platforms offer voluntary protection mechanisms to provide investors with more security. Such security measures can be realised, for example, through special insurance policies or reserve funds that refund part of the investment in the event of insolvency. It is important for investors to check the deposit protection conditions of the respective platform before investing, as crowdfunding generally harbours a higher risk of loss than traditional bank investments. Deposit protection offers an additional layer of protection here, but does not provide comprehensive protection against losses.

An entity is a separate legal entity that is recognised as a legal person and can act independently. This includes companies, organisations, corporations or special purpose entities. Constructs such as letterbox companies. An entity has the ability to enter into contracts, incur liabilities and participate in business activities independently of the natural persons who manage or own it. In the business and legal context, an entity often serves to separate personal and corporate assets and responsibilities. Letterbox companies, for example, are entities that often exist without a physical presence in a country and are frequently used for administrative purposes or tax advantages. Entities play an important role in the globalised economy as they enable companies to operate in different jurisdictions and optimise legal and tax structures.

Equity crowdfunding is a form of financing in which private investors acquire equity shares in a company. In contrast to traditional crowdfunding models, where supporters only receive a reward or a pre-product, participants in equity crowdfunding invest in the company and become co-owners. This type of crowdfunding is primarily aimed at start-ups and growth companies that need additional capital to develop and scale their business models. The advantage of equity crowdfunding lies in the opportunity for young companies to obtain capital relatively unbureaucratically and build up a broad investor base in the process. Investors have the opportunity to benefit from an increase in value if the company is later sold or floated on the stock market. However, they also run the risk of their shares becoming worthless if the company fails. Equity crowdfunding is therefore a form of risk capital and is regulated in many countries in order to protect both companies and investors.

Profit participation is a form of financing in which investors receive a contractually agreed share of a company's profit or turnover in exchange for their capital, without acquiring shares in the company itself. This method is often used in crowdfunding campaigns and for smaller growth companies that do not want to sell equity shares but still want to raise capital from external supporters. With a revenue share, backers invest in the company and receive a return-based payout linked to the company's financial performance. Unlike dividends, which are paid out to shareholders, revenue sharing is based directly on business revenue and varies according to turnover or profit. This financing method offers the advantage that the repayment is flexible for the company, as it depends directly on its earnings. Profit participation is particularly attractive for investors who want to participate in the growth of a company but are not looking for a long-term commitment in the form of company shares.

The exit strategy is a planned process in which investors or company founders determine how and when they want to sell their shares in a company and thus realise their investment. monetise their investment. The aim of an exit strategy is to realise the best possible profits when the company has reached an attractive market valuation. For investors, especially in areas such as equity crowdfunding or venture capital, a clear exit strategy is crucial as it should ensure the return of their investment and potential profits. Typical exit methods include the sale of shares to other investors, a trade sale, a buyback by the founders or an initial public offering (IPO). The choice of exit strategy depends on several factors, including market conditions, the company's growth potential and the financial goals of the investors and founders. A well-planned exit strategy is particularly relevant in the crowdfunding sector, as many small investors are looking for a way to sell their shares after a certain period of time and secure their returns.

A financing model describes the systematic structure and conditions according to which financial resources are collected for a project and later distributed. In the area of crowdfunding, there are There are various models that differ in terms of their respective investment conditions and risk aspects. These include, among others: Reward-based crowdfunding: Supporters receive a consideration or reward for their financial support, for example in the form of product prototypes. Equity-based crowdfunding: Investors receive shares in the company and therefore participate directly in the company's success or loss. Lending-based crowdfunding: Supporters act as lenders and receive the invested money back with interest. These different models enable targeted financing depending on the type of project and the needs of the investors.

The funding threshold is the minimum amount that a crowdfunding campaign must raise in order to guarantee the realisation of a project. This threshold is set in advance of the campaign and serves as a target to secure the financial basis for project development. If the funding threshold is not reached, the project is deemed unsuccessful in most cases, which means that supporters are refunded the amounts they have paid in. The funding threshold is therefore an essential element in crowdfunding in order to minimise risks and clearly define the feasibility of a project.

The company address is the official business address of a company and primarily serves as the legal location for the delivery of business mail and entry in the commercial register. Often the address of a virtual office or a letterbox company is used for this purpose, especially if the company does not carry out any physical business activities at this location. A company address is essential for formal business registration and ensures that the company has a fixed contact address for legal and official purposes.

The funding amount refers to the financial sum that a supporter or investor invests in a crowdfunding project. This amount can vary and is often are linked to different reward levels or investment conditions. In reward-based crowdfunding, for example, supporters receive different rewards depending on the funding amount, while in equity-based crowdfunding, higher contributions often secure larger shares or rights in the company. The funding amount is therefore a central element for financing projects and motivates supporters through customisable investment opportunities.

Freelancers are self-employed professionals who work on a project-based or fee-based basis for various clients. Often organised via virtual offices or occasionally letterbox companies, they offer their services independently without being permanently integrated into the company. Freelancers are particularly well represented in areas such as consulting, design, IT and content creation and offer companies a high degree of flexibility, as no permanent employment is required. This form of work offers both sides the advantages of specialised services and individually adaptable working agreements.

The funding limit is the maximum amount of funding that is set for a crowdfunding project. This upper limit serves to clearly define the financing framework and to ensure a to avoid overfunding the project. As soon as the funding limit is reached, no more money is usually accepted. The limit ensures that only the funds required for the project are collected, thereby maintaining transparency and trust with supporters.