Glossary

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.