FINANCIAL MARKET TRANSFORMATION THROUGH CROWDFUNDING PLATFORMS: UKRAINIAN AND INTERNATIONAL EXPERIENCE

Abstract

This article addresses the issue of crowdfunding as an alternative financing tool in Ukraine, with a focus on its role in transforming the financial market. The study analyzes the development and impact of crowdfunding platforms, particularly Biggggidea, which plays a significant role in supporting social initiatives and small businesses. The authors emphasize the increasing importance of crowdfunding as a tool for raising funds, highlighting its ability to bypass traditional financial institutions, especially in a country where access to financing remains limited due to high interest rates and stringent banking requirements. The article also compares Ukraine's crowdfunding platforms to global leaders such as Kickstarter and Indiegogo. It highlights the positive aspects of these platforms, especially their capacity to mobilize funds for various projects, from technological innovations to social ventures. Kickstarter, for instance, has proven that crowdfunding can be an effective means of financing creative and innovative ideas by offering rewards to backers in exchange for their contributions. This model has shown significant success in attracting a large number of small investors, a feature that could be particularly beneficial for Ukrainian platforms seeking to engage the broader public. Moreover, the article delves into the regulatory challenges facing crowdfunding in Ukraine. The lack of a clear legal framework presents a barrier to growth, as both investors and project creators face risks due to the absence of robust legal protections. The authors suggest that the development of a comprehensive regulatory environment, similar to the European Union's Crowdfunding Regulation 2020/1503, could foster growth in the industry by ensuring transparency and protecting the interests of all parties involved. They also point out the need for greater financial literacy among the Ukrainian population to build trust in these platforms. In conclusion, the article underscores the potential of crowdfunding to transform the financial landscape in Ukraine. It argues that while there are significant challenges, including regulatory gaps and low public awareness, the opportunities for crowdfunding to support innovation, small businesses, and social initiatives are immense. The authors call for the adoption of international best practices, along with local regulatory improvements, to ensure the sustainable growth of crowdfunding in Ukraine.