Crowdfunding represents the alternative way of raising money where by a large number of people contribute a small amount of money to fund different creative projects. Crowdfunding is a new economic trend in the world and as such it is not present in all developed countries and many people are not aware of its advantages compared to classic ways of financing which is the issue (problem) of this research. The main goal of the thesis is to become acquianted with the basic characteristics of crowdfunding in Europe as well as to compare and analyse its advantages and disadvantages in England and the Netherlands. England has been known for the largest crowdfunding market based on the equity. Due to the positive attitude of the government, crowdfunding enables progressive regulations and tax reliefs. England has got the most developed market of the peer to peer 90% loans as well as lots of platforms and investing models. The Netherland is the second country with a long tradition og crowdfunding but still not as developed as England. Their government tries to stimulat the growth and development of the industry in order to improve funding for small and middle entrepreneurs. Crowdfunding can be seen as one of the leading ways of economic recovery if the countries invest in enlightning the entrepreneurs about the advantages of crowdfunding.