Abstract:

Nowadays, the trend of using alternative finance for financing new ventures has thrived worldwide. It may be seen as a result of weakening traditional one financial institutions and socio-cultural-economic shift towards society. There are doubts what can be define as alternative finance instruments. In general, as alternative finance can be described various financial channels that have position outside of the traditional financial system. It seems, they have been slowly started to be understood as one of the part of future finance system. Some of the non-traditional finance instruments, especially peer-to-peer financing activity and crowdfunding, has been given by many experts a little prospect of contributing to the broader financial system. However, since the alternative finance sources are taking more and more attention, I firmly believe that it is important to provide a comprehensive overview of such opportunities. Especially, understanding the nature of such business models is essential. This paper deals with the topic of alternative finance. This area may be described as a fast-growing area, but there is still need for more information about the situation of this industry in general.