CROWDFUNDING SYSTEMS: evaluation and government regulation in the conditions of reengineering

J. Lerner analyzed the advantages and disadvantages of traditional methods of obtaining the necessary financing for the implementation of socio-economic development projects (Lerner, 1995). E. Mollick conducted a study of the dynamics of crowdfunding operations and tried to find out the relationship between certain factors (activity in social networks, project duration, goals, etc.) and the success of projects (Mollick, 2014). Results of the research work of P. Belleflamme and co-authors show that crowdfunding as a financial instrument can compete with traditional financing methods due to its numerous advantages and the relatively low cost of capital used (Belleflamme et al., 2014). Obviously, this is a good argument for using it to implement reengineering projects. Scientists O. Dyba and Yu. Herneho believe that crowdfunding is one of the functional types of crowdsourcing, the main task of which is to raise funds using Internet resources to implement projects. However, in their opinion, crowdfunding also affects other types of crowdsourcing. For such a crowdsourcing task as creating a new product or content, crowdfunding makes it possible to obtain the necessary information about projects, business ideas, and their authors, thereby determining the prospects for financial support of such projects and the feasibility of their further implementation (Fig 1.1). The communication function helps to find solutions and vote for the best ones. It helps to select and analyze the results obtained in order to identify the optimal innovative solution for the project ( Ⱦɢɛɚ et al., 2015). Fig 1.1. Relationship between the concepts and components of crowdfunding and crowdsourcing Note: Ⱦɢɛɚ et al., 2015 Crowdsourcing Search for ideas Content creation Vote Crowdfunding 15