Abstract
Financial support is very important in the innovative sphere, because it creates the basis of the whole economic development. There are several ways how this support can be organized: from the family money to government subsidy. This paper focused on a relatively new way how a startup as a small innovative business can gain finance - crowdfunding platforms. As a preparation for the analysis theoretical concepts of innovative startup investment were considered and the unique characteristics of crowdfunding market were examined. The purpose of the study is to underline main characteristic of startups as a way of financial innovation performance, analyze the determinants of crowdfunding platform’s effectiveness, define an optimal strategic behavior for a platform to accumulate greater amount of investment and increase the number of startups which achieve their financial goals. Analysis is based on the data from 105 crowdfunding platforms during last 3 year (from 2018 till 2020). As a result, based on the multiple linear regression an analysis was conducted which showed that age, platform type and scope are main characteristics of crowdfunding platform efficiency while commission type is not correlated with startup crowdfunding success rate.
Highlights
The development of innovations is a very important aspect of entrepreneurship as it is a determining factor in economic growth of the country
Bigger platform contains bigger amount of project in it, making a new start-up that is looking for finance invisible in this crowd. This fact should be correlated to the last considered determinant - total number of projects launched on the platform during the year, which is interesting to considered in the field of correlation with the success rate of the platform
By success I mean the achievement of the goal – collecting a certain amount of money, stated before the procedure started; PT - type of commission financing, where AON = 1 and KIA = 0; CT - type of commission divided by the situation where investors pay = 1 and 0, when the commission is paid by the startup founders; Y - number of years of platform existence; PR - total number of projects launched on the platform during the year
Summary
The development of innovations is a very important aspect of entrepreneurship as it is a determining factor in economic growth of the country. The main characteristics of innovation are practical relevance, profitability, scientific novelty and compliance with market needs [1]. Innovative project is such a venture that aimed to solve the unique problem of creating, introducing, mastering innovations, displaying their results on consumers. Most common way to create an innovative project is by organizing an start-up, as it can be done by one person or a small group without significant control form others like government or mother company.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
