Modern mechanisms of startup financing: from venture capital to crowdfunding

The article investigates modern mechanisms of startup financing within the context of the evolution of the global entrepreneurial capital ecosystem. Traditional financial institutions have proved structurally inadequate for servicing innovative companies, which has led to the formation of a parallel ecosystem of alternative financing: venture capital, business angels, crowdfunding, and initial coin offerings. Each of these mechanisms has its own operational logic, project selection criteria, and expectations regarding return on investment. A systematic review and analysis of scientific publications on startup financing issues has been conducted. The main financing mechanisms at various stages of innovative companies' life cycles have been characterised. Theoretical concepts of venture capital have been systematised: “patient capital”, “value-added capital”, and “smart capital”. Specific features of corporate venture capital have been identified, and the differences between strategic and financial orientations of CVC programmes have been revealed. Four crowdfunding models have been analysed, and key success factors of crowdfunding campaigns have been identified. Mechanisms of pre-ordering and price differentiation in reward-based crowdfunding have been elucidated. Based on the generalisation of empirical research, critical success factors in attracting financing have been identified: presence of patents, participation of business angels, team experience, social media activity, and the role of friends and family as early legitimisers of projects. Practical recommendations for entrepreneurs have been formulated regarding the selection of optimal financing mechanisms depending on the company's development stage and business model specifics. A combined financing strategy has been substantiated: own funds for creating a minimum viable product, crowdfunding for market validation, business angels for scaling, and venture capital for aggressive growth.