KEY ASPECTS OF CROWDFUNDING

Abstract

The article reveals the essential characteristics of crowdfunding; the preconditions of its origin and development are considered; the existing crowdfunding ecosystem is considered, which combines, along with basic participants and additional service providers, government agencies and regulatory methods. Based on the analysis of existing crowdfunding business models, their detailed classification is presented. The key positive and negative aspects of crowdfunding are considered, as well as the possible risks of using this business model to raise funds. The necessity of further development of this fintech as a potential of development of the market of alternative finances is proved. Over the last decade, alternative methods of providing financial services, commonly called fintech, have been actively introduced around the world. These include areas such as payments and remittances, user identification and identification, investment and risk management, personal finance and loans, banking and insurance. One of the most widespread fintech services in the world is crowdfunding, which means raising funds from a large number of users through specialized Internet platforms. This business model was originally used only as an alternative to raising money online to record albums and organize music shows through a website. The idea of financing any project at the expense of small amounts and attracting a large number of people is not new. Thanks to the Internet and its accessibility, it has become possible for many users to create intermediary websites that publish fundraising information and engage stakeholders. Today it is relatively difficult to determine the beginning of crowdfunding in its modern sense. In general, crowdfunding is seen as a means of obtaining funding from individuals and law firms through online sites to achieve various goals without the mediation of traditional companies or professional financial market participants.