Crowdfunding – The case of Slovakia and the Czech Republic

Abstract

Purpose: Crowdfunding as a form of alternative financing has become a widespread and successful form of financing new ideas. In this paper, we investigate crowdfunding in CEE countries, Slovakia and Czech Republic, with a strong focus on reward-based crowdfunding. The aim of this paper is to describe the current situation of crowdfunding in the Czech and Slovak Republic. Methodology/Approach: We have analysed the Czech and Slovak market and compared it to the global platform Kickstarter in an attempt to find variables affecting the success of projects using linear and logistic regression. Findings: The distribution of types of crowdfunding is similar to the global situation, but the low levels of awareness and conservatism are slowing down the speed of development of crowdfunding in Slovakia and the Czech Republic. We have also observed a higher degree of uncertainty and randomness in modelling of crowdfunding. Research Limitation/implication: In this paper, not all crowdfunding portals have been included because of data unavailability. Originality/Value of paper: The originality of this paper is guaranteed by its focus on the crowdfunding industry in the Czech and Slovak Republic.