FINANCING STARTUPS USING CROWDFUNDING PLATFORMS IN UKRAINE AND WORLD

Abstract

The article examines the development of startups as one of the progressive forms of innovative entrepreneurship, as well as the search for new methods of capital accumulation. The essence of the concept of crowdfunding, prospects of its application for financing of innovative projects are defined. Examples of modern crowdfunding platforms, which are one of the methods of attracting investment to finance startups, are given. The main sources of funding for startup projects are considered, and an attempt is made to characterize the business models of crowdfunding. The classification of types of crowdfunding on the basis of approaches of scientists concerning definition of its kind is offered. A review analysis of the success of the use of international crowdfunding platforms in the context of attracting investment in innovative projects. A number of problems that exist in the development, dissemination and implementation of foreign experience in the implementation and effectiveness of crowdfunding platforms in Ukraine are outlined. Modern globalization processes and the competitive environment necessitate the transfer of Ukraine’s economy to an innovative path of development, which requires significant financial resources. Without the use of the latest tools of the financial and investment system, it is impossible to improve the state of entrepreneurial activity and the implementation of innovative, social and business projects in the domestic economic realities. In the developed world, crowdfunding has already established itself as an innovative high-tech financial tool for raising funds to implement projects and support startups. This method of financing has a number of advantages, but its application in Ukraine is somewhat limited due to certain technological, economic and social barriers. The existence of these problematic aspects necessitates a detailed study of the concept of “crowdfunding”, its features and operating conditions. In general, the development of economic entities depends on many factors, where it is important to attract financial resources for the development of innovative areas of the economy. As a result of the development of information technologies, new forms of financing are created, which are based on public participation. Potential investors may be ordinary citizens, but due to the difficult economic situation, lack of funds and risk, they are still refraining from investing. Understanding that self-financing is an important way to find resources for the company’s own development determines the development of crowdfunding, which today needs to intensify its development in our country.