CROWDFUNDING – FORMS, FACTS AND IMPLICATIONS

Abstract

In the context of actual international economic and financial context, the firms, Small and Medium Enterprises (SMEs) especially the start-ups, still confront with accessing to finance problems. This fact determined a reorientation towards other alternative forms of financing. Thus, in recent years, an increasing range of financing options (crowdfunding, angels investors, venture capital) has become available to SMEs, although some of them are still at an early stage of development or, only accessible to a part of SMEs. As an alternative form of financing, the crowdfunding is often used by start-ups or developing businesses. Crowdfunding is an innovative way to identify new sources of funding for projects or business and to get useful market information, to access new customers using the power of online community. In less than a decade, crowdfunding extended in many developed countries from Europe and all over the world but also it is attracting an important interest in the developing countries. Despite these positive trends, there are still many barriers agains the new forms of alternative financing. Besides the new programs developed at the national and international level, should be undelined that a credible and relistic crowdfunding system require entrepreneurs and willing investors but also a number of key determinat factors (regulatory framework, ecosystem, technological solutions, etc) that enable all parties to participate and take benefits from this new financing alternative.

Keywords

• crowdfunding
• alternative financing
• start-up
• SMEs