The analysis of publishing activity on the use of innovative tools for financing business activities has shown a recent increase in scientific interest in this issue, which indicates its relevance. The purpose of this study is to analyze the possibilities of using traditional and innovative tools for financing business activities at different stages of satisfaction the investment needs of businesses. The study considers the main traditional and innovative mechanisms for raising capital for business development, as well as analyzes the financing tools of economic entities depending on the stage of business development. The main forms of bank lending to business entities are described, the main mechanisms of state financing and its legislative regulation are considered. The main differences between business angels and venture funds are analyzed. An innovative form of project financing through crowdfunding is considered. Possibilities of application of mezzanine financing and initial public offering of shares at different stages of realization of investment projects are analyzed. SWOT-analysis of such capital raising instruments as: bank lending, public financing, financing based on the 3F model, venture financing, crowdfunding, mezzanine financing, IPO was made. Based on the SWOT-analysis, the expediency of using certain tools at different stages of development of the business entity is substantiated. Research has shown that innovative financing instruments have significant dissemination potential, especially in the context of the rapid development of information technology. Further research in this area should be devoted to identifying the factors contributing to the spread of innovative tools for business financing. The obtained results can be used by entrepreneurs in choosing the optimal sources of financing investment activities. The results of the work deepen the knowledge about the possibilities of using innovative tools for the formation of financial resources.