This thesis explores the topic of crowdfunding as a modern source of financing, which is becoming increasingly important in the business world. The paper analyzes traditional sources of financing such as bank loans, promissory notes, and venture capital, as well as their role in funding business entities. With the development of technology, social media, and online platforms, crowdfunding stands out as a new and dynamic alternative. The paper examines different crowdfunding models, including Donation-based, Reward-based, Equity-based, Debt-based, and Hybrid crowdfunding, comparing them with traditional financing methods. The advantages of crowdfunding include easier access to capital, validation of business ideas, and promotion, while the disadvantages are related to legal uncertainties, high competition, and the risk of campaign failure. Additionally, the paper analyzes the operation and functioning of crowdfunding platforms, which act as intermediaries between entrepreneurs and investors, facilitating easier access to capital markets. Specific platforms present in both the global market and in Croatia are examined, with a particular emphasis on their characteristics and effectiveness. The development of crowdfunding in Croatia is also highlighted, including current challenges and future growth opportunities. The objectives of this paper are to provide a comprehensive overview of crowdfunding as a modern source of financing, compare it with traditional financing models, and demonstrate its application, particularly for small and medium-sized enterprises.