Open AccessEQUITY CROWDFUNDING AS A TYPE OF PROJECT INVESTING
Author(s) -
Dimitar Blagoev,
Krasimir Petkov
Publication year - 2019
Publication title -
trakia journal of sciences
Language(s) - English
Resource type - Journals
eISSN - 1313-3551
pISSN - 1312-1723
DOI - 10.15547/tjs.2019.s.01.039
Subject(s) - investment strategy , portfolio , investment (military) , return on investment , separately managed account , equity (law) , rate of return , modern portfolio theory , business , economics , finance , context (archaeology) , investment performance , financial economics , open ended investment company , microeconomics , profit (economics) , paleontology , politics , market liquidity , political science , law , biology
PURPOSEThe Article aims to present the potential and capabilities of the application of equity crowdfunding as an option to invest and to form investment portfolios for the individual investors. The emphasis is shifted from the widespread use of the concept of crowdfunding, as a cutting-edge source for providing capital for investment projects of innovative companies (especially suitable source for the so called Startup companies), to its use as a tool for establishing an investment portfolio based on appropriate balance between the rates of return and risk.METHODSVarious authors' views on key concepts such as investments, projects, investment projects, equity collective investment, investment portfolios, etc. have been clarified and summarized. The investment process is explained in the context of creating a portfolio of investments using equity crowdfunding platforms. Conceptually, the essential characteristic of the project theory, the theory of collective investment, with its methodological and mathematical tools, are revealed.RESULTSOn this theoretical basis and adaptation, a conceptual methodological model has been developed, to be used for selection of portfolio of investment projects for equity collective investment. The model focuses on the optimization of rate of return, given the risk nature of the financial investment instrument used in collective investment.CONCLUSIONSConclusions are presented about the main advantages and the respective limitations of the type of investments, subject of the paper.