Review article
Crowdfunding – what do we know about this alternative source of financing?
Iva Čondić-Jurkić
; Rochester Institute of Technology Croatia
Abstract
Crowdfunding is an alternative source of financing by which a large number of people use online platforms to make small contributions to a cause. Crowdfunding can take place either through investment-based platforms, or through reward-based and donation-based platforms. The choice of platform by a supporter of a campaign reflects their motive for participating in crowdfunding financing. Participation can be either intrinsically driven, when the supporter requires no monetary compensaton, but enjoys helping others, or extrinsically driven, when the supporter expects potential financial returns. In addition to the main aspects of the crowdfunding market, this paper aims to analyze the potential challenges and risks faced by the crowd. A high-quality regulatory environment would help mitigate these risks.
Keywords
crowdfunding; financing; motivation; risks; regulation
Hrčak ID:
151755
URI
Publication date:
31.12.2015.
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