LEGAL MODELS FOR THE REGULATION OF HYBRID FINANCING IN VARIOUS JURISDICTIONS

The development of entrepreneurial activity is primarily determined by the availability of adequate financing sources. Financing is the process of attracting monetary funds necessary for entities to start, expand, and modernize their operations. Conventional financing methods, particularly bank loans and equity issuance (capital financing), have long served as the main pillars of economic development. However, each method has inherent limitations: bank loans are restricted by high interest rates and stringent collateral requirements, while equity financing (such as an Initial Public Offering—IPO) demands complex legal procedures and high costs.