Crowdfunding as a Competing Venture Funding Innovative Tool to Attract Investment

The article is devoted to the new instrument to attract funding, which competes with the traditional instruments of attraction of investments - crowdfunding. The comparative research of venture capital and crowdfunding shows opportunities and risks of crowdfunding in the purpose of raising funds to projects. Crowdfunding opportunities are highlighted, as well as competitive advantages of crowdfunding compared to venture capital. In order to identify the advantages and disadvantages of crowdfinding, as well as the characteristics of the competitive advantages of the instrument and the risks of its use, the factors of the competitiveness of the tool are determined in the work. A comparative study of the source of funding for crowdfunding with venture capital in the field of: financial arrangements and contracts, investor protection, investor relations and behavior, investors' exit from the company's capital. In the course of the study, unique features of crowdfunding were also revealed in attracting funding, for example, the emerging asymmetry of information. The double trust dilemma created in the process of using the innovative tool is considered. The motivational component of crowdfunding is determined, divided by the motivation of the entrepreneur and the motivation of the investor. Dedicated to the same factors deterrence of entrepreneurs and investors.