The article is devoted to the financing of small innovative entrepreneurship or startups. One of the most important tasks of the state policy is to achieve sustainable economic development through technological modernization and economic diversification. Startups (innovative companies) are a powerful driver of this development. They react most quickly to the current problems of the population, thereby increasing citizens' quality of life. It is the activity of startups as innovative companies that stimulates the emergence of new industrial production and, in practice, changes the priorities of applied research and development. The main sources of financing startups are an object of the study. Thus, the economic relations arising from the search for these financing sources are a subject of the study. The author describes in detail the technologies of financing such as venture financing, bank lending, crowdfunding, investing via business-angels funds and forms of state support for innovative companies. We analyze advantages and disadvantages of each financing form. The author pays special attention to the current state of financing startups in Russia. We also give examples of successful financing programs at private and state levels.
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