Crowdfunding as an Alternative Financial Innovation for Startup Funding

Abstract

The development of financial technology has driven the emergence of various alternative financial innovations, one of which is crowdfunding. Crowdfunding has become a potential solution to overcome the limited access that startups face in obtaining funding from traditional sources such as bank loans or venture capital. This study aims to explain the role of crowdfunding as an alternative financial innovation in supporting startup funding through a systematic review of 12 international academic articles. The results show that crowdfunding is not merely a funding tool, but also serves as an instrument for financial democratization, accelerates startup growth, and encourages community participation in the business innovation process. However, challenges such as regulatory uncertainty, fraud risks, and limited financial literacy among investors remain obstacles to optimizing crowdfunding platforms. This research contributes to a broader understanding of the alternative funding landscape and supports the development of strategic policies to foster the growth of innovative entrepreneurship.