Crowdfunding – a new modern way of financing startups: empirical study from the Czech Republic

Abstract

The realisation of many ventures requires funding from external parties, which is very difficult to gain at the beginning stage of bussines, where very often only prototype is created. Crowdfunding offers a new potential source of financing, which is frequently expected to favor socially and art-oriented ventures. However, little is known about actual state reward based crowdfunding in the Czech Republic, what campaings are more likely to be successful and how it could be effectively used for businesses. This article empirically examines two biggest reward based crowdfunding platforms in the Czech Republic to analyze current situation of crowdfunding in the Czech Republic and likelihood of successful funding reward based campaings in general.