Title: How to reduce the risks of crowdfunding as an innovative mechanism of financing investment projects

Authors: Maria Bakumenko; Anatoliy Sigal

Addresses: Department of Business Informatics and Mathematical Simulation, Institute of Economics and Management (A Division), V.I. Vernadsky Crimean Federal University, Sevastopolskaya Str. 21/4, Simferopol, 295015, Russia ' Department of Business Informatics and Mathematical Simulation, Institute of Economics and Management (A Division), V.I. Vernadsky Crimean Federal University, Sevastopolskaya Str. 21/4, Simferopol, 295015, Russia

Abstract: The mechanism of crowdfunding can provide project participants with a number of significant advantages. The technology of crowdfunding is good for economic processes in a country. Crowdfunding as an innovative mechanism of financing investment projects in the real economy may pose specific risks. While implementing any investment project, risk should be managed from the perspective of a comprehensive approach. The postulates of a new research area event-related management of safety and quality in economics are applicable to investment projects implemented in the real economy. Upgrading the quality of justification of an investment project, presented on a specialised crowdfunding web platform, will make the project safer for all the participants of the crowdfunding transaction and, correspondingly, will lead to a reduced risk level. It is worth designing a software module (information system) for specialised crowdfunding web platforms, to evaluate the efficiency of investment projects.

Keywords: crowdfunding; financing mechanism; investment project; real economy; risk; event-related management; safety; quality; crowdfunding platform; software; project efficiency.

DOI: 10.1504/IJRAM.2021.126414

International Journal of Risk Assessment and Management, 2021 Vol.24 No.2/3/4, pp.178 - 195

Received: 27 Jul 2020
Accepted: 08 Jan 2021
Published online: 26 Oct 2022 *

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