Uman NUH | today: 04/14/2024
| Author(s) | Vlasyuk S.A., , , Uman National University of Horticulture | ||
|---|---|---|---|
| Category | Economics | ||
| year | 2022 | issue | Issue number 100. Part 2 |
| pages | 187-196 | index UDK | 336 : 330.341.11 | DOI | 10.31395/2415-8240-2022-100-2-187-196 (Link) |
| Abstract | To fund the operation of business entities, traditional sources are commonly applied such as private and borrowed funds or proceeds. Nowadays, crowd funding as an alternative avenue of funding applying digital technologies, is developing, which can help extend beyond traditional ones, providing a lower initial cost for small-sized investors, demonstrating public interest, etc. Crowdfunding can be an important alternative method of funding, especially for micro-enterprises, start-ups and non-profit-making associations. It is determined that crowdfunding is not just a new alternative method of funding, but also an innovative tool for attracting communities, a powerful information force, a way to finance new businesses and a means of using new Internet technologies to address social problems. It was found that during the pandemic, the number of new companies receiving financial resources through opening crowd funding platforms via the Internet has significantly increased for creating their own business projects or ideas. It is worth mentioning that all investors should be aware of the fact that the founders of the business idea are active, and that their financial investments will take part in an important deal that will be known to a wide range of people. It is specially noted that the crowdfunding dissemination between world countries differs significantly, partly based on differences in the national institutional environment. The crowdfunding market is currently dominated by American platforms such as Kickstarter, Indiegogo and Fundrazr that are some of the strongest participants. The development of financial innovations applying crowdfunding requires the development and operation of special means of methodological assistance, as well as tools to leverage funds for providing business projects and ideas. These needs demands some appropriate tools for assessing financial innovation, as well as making recommendations on possible ways to leverage financial resources through the applying of crowdfunding platforms to promote opportunities for the development of collaborative action | ||
| Key words | crowdfunding, crowdfunding platform, investments, business project, funding | ||