{"id":8745,"date":"2017-11-15T09:38:40","date_gmt":"2017-11-15T07:38:40","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=8745"},"modified":"2017-11-17T10:18:34","modified_gmt":"2017-11-17T08:18:34","slug":"crowdfunding-as-an-innovative-method","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/crowdfunding-as-an-innovative-method\/","title":{"rendered":"Volosovych Svitlana, Vasylenko Antonina, CROWDFUNDING AS AN INNOVATIVE METHOD FOR FINANCING PROJECTS"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]JEL Classification<\/strong>:\u00a0<\/strong>E 51, G 20<\/p>\n

Volosovych Svitlana, <\/strong>Doctor of Economics (E.D.), Professor, Professor of the Department of Finance, Kyiv national university of trade and economic, Kyiv, Ukraine<\/p>\n

Vasylenko Antonina, <\/strong>Candidate of Economics (PhD), associate professor of the Department of Finance, Kyiv national university of trade and economic, Kyiv, Ukraine<\/p>\n

CROWDFUNDING AS AN INNOVATIVE METHOD FOR FINANCING PROJECTS<\/strong><\/p>\n

Introduction. <\/strong>Transformation of investment project financing methods has led to the creation of a crowdfunding, which allows a large number of people through an online platform\u00a0 jointly fund certain types of projects of different purposes.<\/em><\/p>\n

Purpose. <\/strong>The purpose of the paper is to determine the possibilities of crowdfunding development in the context of the financial market institutional transformations.<\/em><\/p>\n

Results. <\/strong>Crowdfunding is an instrument of financing projects through an open call on the basis of material or moral interest of potential sponsors.\u00a0 The principles of crowdfunding are the target nature of contributions, the interest of future sponsors, the transparency of the attraction and use of attracted financial resources, and the convenience for investors.\u00a0 The maturity level of crowdfunding as a component of the alternative finance system can be assessed by such criteria as the degree of information provision, degree of activity, diversity in platform types, approach of banking industry towards platforms, the level of public awareness, the level of government regulation.\u00a0 It has been assumed that in Europe and the USA implementation of legislation on crowdfunding is held.\u00a0 Domestic legislative base does not contain specific norms regulating these activities.<\/em><\/p>\n

Conclusions. <\/strong>Regarding shortage of financial resources, despite the risk of project initiators bankruptcy, crowdfunding is promising for funding small and medium enterprises.\u00a0 This requires the creation of appropriate legislation.\u00a0 At the same time, activating the processes of decentralization in the domestic financial system, crowdfunding can become promising for use by local authorities in financing certain projects.<\/em><\/p>\n

Keywords: <\/strong>crowdfunding, principles of crowdfunding, crowdfunding business models’\u00a0types, state regulation of crowdfunding.<\/em><\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Gierczak, M. M. Bretschneider, U. Haas, Ph. Blohm, I. and Leimeister, J. M. (2015), \u201cCrowdfunding: Outlining the New Era of Fundraising\u201d, [Online], available at: https:\/\/www.alexandria.unisg.ch\/239336\/1\/JML_516.pdf<\/a> (Accessed 14 October 2017).<\/li>\n
  2. Ordanini, A. Miceli, L. Pizzetti, M. and Parasuraman A. (2011), \u201cCrowd-funding: transforming customers into investors through innovative service platforms\u201d, [Online], available at: https:\/\/goo.gl\/YyPfqS (Accessed 14 October 2017).<\/li>\n
  3. Belleflamme, P. Lambert, T. and Schwienbacher, A. (2010), \u201cCrowdfunding: An industrial organization perspective\u201d, [Online], available at: https:\/\/goo.gl\/F0gd2C (Accessed 14 October 2017).<\/li>\n
  4. Ivashchenko, A. I. Polishchuk, Ye. A. and Dyba, O. M. (2016), \u201cOutlooks of crowdfunding in Ukraine as an instrument or raising funds for small and medium enterprises\u201d, Investytsii: praktyka ta dosvid<\/em>, no. 21, \u0440\u0440. 34-39.<\/li>\n
  5. Mazaraki, A. and Volosovych, S. (2016), \u201cDominants of institutional modernization of Ukrainian financial system\u201d, Visnyk Kyivskoho natsionalnoho torhovelno-ekonomichnoho universytetu<\/em>, no. 21, \u0440\u0440. 5-23.<\/li>\n
  6. Belleflamme, P. Lambert, T. and Schwienbacher, A. (2011), \u201cCrowdfunding: Tapping the Right Crowd\u201d, [Online], available at: http:\/\/ssrn.com\/abstract=1836873 (Accessed 14 October 2017).<\/li>\n
  7. CrowdfundingHub (2016), \u201cCurrent State of Crowdfunding in Europe: An Overview of the Crowdfunding Industry in more than 25 Countries: Trends, Volumes & Regulations\u201d, [Online], available at: https:\/\/goo.gl\/nFCc1n<\/a> (Accessed 14 October 2017).<\/li>\n
  8. Vasylenko, A. V. (2016), \u201cInnovative methods of investment projects’ financing\u201d, [Online], available at: https:\/\/goo.gl\/ERVqHu<\/a> (Accessed 14 October 2017).<\/li>\n
  9. S. Securities and Exchange Commission (2012), \u201cJumpstart Our Business Startups (JOBS) Act\u201d, [Online], available at: https:\/\/www.sec.gov\/spotlight\/jobs-act.shtml<\/a> (Accessed 14 October 2017).<\/li>\n
  10. Torris, T. (2017), \u201cThe ECN Updates Review of Crowdfunding Regulation in the EU, Israel & the USA\u201d, [Online], available at: https:\/\/goo.gl\/v1Z94K (Accessed 14 October 2017).<\/li>\n
  11. Financial Conduct Authority (2015), \u201cCrowdfunding\u201d, [Online], available at: https:\/\/www.fca.org.uk\/consumers\/crowdfunding<\/a> (Accessed 14 October 2017).<\/li>\n
  12. Royal Bank of Scotland (2015), \u201cRBS to become biggest player in the peer-to-peer lending referral market\u201d, [Online], available at: https:\/\/goo.gl\/6wF2TI (Accessed 14 October 2017).<\/li>\n
  13. Big Idea (2017), \u201cTerms of Crowdfunding\u201d, [Online], available at: https:\/\/biggggidea.com\/pages\/spilnokosht\/<\/a> (Accessed 14 October 2017).<\/li>\n
  14. The Verkhovna Rada of Ukraine (2010), The Law of Ukraine \u201cThe Tax Code of Ukraine\u201d, [Online], available at:\u00a0http:\/\/zakon2.rada.gov.ua\/laws\/show\/2755-17<\/a>(Accessed 20 October 2017).<\/li>\n<\/ol>\n
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    [vc_row][vc_column][vc_column_text]JEL Classification:\u00a0E 51, G 20 Volosovych Svitlana, Doctor of Economics (E.D.), Professor, Professor of the Department of Finance, Kyiv national university of trade and economic, Kyiv, Ukraine Vasylenko Antonina, Candidate of Economics (PhD), associate professor of the Department of Finance, Kyiv national university of trade and economic, Kyiv, Ukraine CROWDFUNDING AS AN INNOVATIVE METHOD FOR
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