The objectives of the research in this thesis include analysis of the fundamental differences between traditional and alternative sources of financing, identification of the main characteristics of the FRC fund and analysis of the FRC investments in selected companies. Bank loans are one of the basic traditional sources of financing where the entrepreneur must meet a number of requirements. Banks check a client's creditworthiness based on its financial statements and credit rating. For the banking sector, these elements are extremely important in relation to the business idea and the entrepreneurial project itself. For this reason, start-ups often do not have access to such capital because they are at high risk. Unlike banks, venture capital funds often encourage start-ups, and when deciding on an investment, the basic criteria are quality business ideas and the ability of the management team. Venture capital funds mainly invest in companies that they believe have high growth predispositions, which for them also means a high return on investment. In the Republic of Croatia, venture capital financing is still underused, however, with the establishment of the Fil Rouge Fund in 2019, many companies have discovered the opportunities that this form of financing offers them. To date, the FRC has invested in 129 companies from various industries, but it has been observed that it most often encourages the development and expansion of companies that offer innovative and environmentally friendly solutions. From 2018 until today, the share of private equity investment in total GDP has been growing, based on which further growth and development of such and other alternative forms of financing can be expected.