Participatory startup financing models in Ukraine

Introduction. In this article, the role of startup financing is examined as one of the primary drivers of Ukraine’s economic development, given that startups act as catalysts for innovative processes, contribute to the formation of a knowledge-based economy, and enhance the nation’s competitiveness. Problem Statement. Despite significant intellectual potential and the need to fund promising projects, traditional financing sources do not always provide sufficient conditions for the sustainable development of startups. In the context of limited credit resources and the volatility of Ukraine’s financial market, participatory models that involve a broad range of investors and partners are becoming increasingly pertinent. Purpose. To analyze the effectiveness and prospects of participatory startup financing models in the vector of development of the innovation ecosystem of Ukraine in the context of modern economic challenges. Methods. The authors employed a system approach, comparative analysis and synthesis of scholarly literature, as well as statistical methods to evaluate the dynamics of startup investments and trends in the development of participatory financing. Results. It has been demonstrated that participatory models (crowdfunding, peer-to-peer lending, equity-based crowdfunding, and revenue-based financing) can effectively complement traditional instruments for capital attraction. Their implementation enhances transparency, fosters interaction between entrepreneurs and the public, increases trust, and creates an environment conducive to startup initiatives. Conclusions. Startup financing is a pivotal factor in Ukraine’s innovation-driven development. Participatory models have the potential to broaden opportunities for resource mobilization, stimulate social responsibility, and enhance the overall competitiveness of the economy. To realize this potential, it is necessary to improve the legislative framework, increase the financial literacy of the population, and introduce incentives for socially oriented projects.