POTENTIAL OF CROWDFUNDING AS A FINANCIAL AND MARKETING INSTRUMENT IN THE REPUBLIC OF CROATIA

• Main Authors: Ivankovic, Jadranka, Tadic, Diana Plantic, Fiser, Matea
• Format: Conference Proceeding
• Language: English
• Subjects: Animal shelters; Crowdfunding; Donations; Entrepreneurial finance; Entrepreneurs; Equity; Fund raising; Funding; Internet; Loans; Marketing; Product development; Profits; Social networks; Social organization; Startups; Target markets; Trends
• ISSN: 1849-6903; 1849-6903

Crowdfunding could be described as a process of raising funding online. Crowdfunding works through collecting small amounts of capital from a large number of people and therefore it could be seen as an alternative way of collecting resources for financing projects, non-profit organization or private initiatives and new business ventures. At the same time crowdfunding can also be viewed as marketing instrument. In order for crowdfunding to be successful, it is crucial that idea or project are presented in a way that attracts, interests and motivates people on engagement. Successful crowdfunding campaign generates financial result and at the same time creates strong awareness, personal engagement and buying willingness of potential target audience. Current world wide practice of crowdfunding is relied on spread and reach of the internet and on the impact of social networks. First crowdfunding campaign in Croatia appeared in 2011 and its use grows ever since. But the term crowdfunding means different things to different people and still this mechanism is not very well known in general public in Croatia. The paper presents research results about understanding, knowledge, experience and future intentions about usage of crowdfunding instrument in Croatia. The research was done in 2018 by online questionnaire on which 131 people responded.