Alternative sources of capital attraction: crowdfunding and crowdinvesting startups

The study focuses on a new form of external non-bank financing for capital-seeking parties by attracting financial resources from a large number of capital providers through Internet platforms to finance an idea, project or company i.e. crowdfunding. The study identifies key trends in attracting external financing, identified both traditional and alternative sources. An overview of the key crowdfunding sites in the Russian Federation is also made. According to the results of the study, the place of crowdfunding in the business financing system was determined depending on the life cycle of the enterprise, as well as on capital intensity and scalability. Crowdfunding already occupies an important place in the system of financing startups and small businesses. Various business models and crowdfunding platforms allow solving several problems at once with lower costs and expenses compared to securities market instruments, as well as with tangible advantages over classical bank lending. For the first time, most Russian crowdfunding platforms are reviewed, a system matrix of enterprise financing is proposed, and the areas of application that are most suitable for using crowdfunding platforms are highlighted, depending on the industry’s capital intensity and the scalability. The results obtained are of practical interest for the development of startups and small enterprises.