THE EFFECTIVENESS OF USING CROWDFUNDING PLATFORMS IN FINANCING STARTUPS AT PRIVATE UNIVERSITIES

Abstract

In modern business conditions, raising capital is of great
importance to commercialise innovative ideas and turn them into sustainable
businesses. The successful development of startups largely depends on the
availability of investment resources and their rational management. Crowdfunding
is one of the modern and effective methods of financing startups, which allows
raising large amounts of money from small investors. This model provides startups
with such advantages as free access to capital, building a customer base, and
identifying market needs. However, there are also problems such as increased
competition, the procedure for charging commissions by platforms, and the
uncertainty of fundraising. Therefore, startup owners should choose the right
crowdfunding strategy and work on a thorough plan. It should be remembered that
investment is not a goal, but a means. To attract financial resources, the founder of
a startup must have a clear business model, understand the cost structure, and have
a strategy that can interest investors.