KEY ELEMENTS OF CROWD FUNDING SYSTEM

Authors:
1
Lviv Polytechnic National University

In current article, author reveals the concept of the crowdfunding system and its role in
the implementation and development of crowdfunding. The challenge lies in the definition of
«crowdfunding system» and its elements and analysis a difference between of crowdfunding
system for national economy and for a separate crowdfunding project.
The author made an analysis of existing definitions of crowdfunding system and its key
characteristics. The foreign practitioners and scientists sometimes use the term "5P" of
crowdfunding system that is similar to the marketing mix consisting «4P» (product, price,
place, promotion). According to the author, the crowdfunding system consists of such elements
as people, purpose, platform, participation and performance (or productivity). For a separate
crowdfunding project, the «5P» is different and it consists of planning, pitch, perks (benefits),
permanent contact with audience and promotion.
Analyze of crowdfunding activity in Ukraine was also conducted, and its features and
problematic aspects of research were identified. Author declares that the crowdfunding can
satisfy the significant demand for microfinance in Ukraine.

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