Venture Investment as a Background for Innovation Development
Abstract
The article deals with the venture entrepreneurship as a phenomenon and explains the nature of venture investment. The author pays attention to an issue of attracting venture capital to finance newborn projects in the modern world and defines the stages which can appear in the process of venture capital investing. Current state of startup ecosystem, its constraints and incentives are described in the research. The key facts and important differences about the startups are outlined in the paper. Fact which is of a current concern is that the ecosystem is getting more competitive and the investors are getting more cautious about choosing the project to invest in, that is why the conditions are stricter year by year. The paper summarizes the types and forms of venture investment and justifies the benefits of their use in building up and developing an enterprise. The features of attracting venture investments are identified and the specifics of the venture investor-consumer are determined in the context of innovation development. The mechanism of venture funds and their types are analyzed. The main factors influencing the formation of ecosystem of startups in Ukraine are studied and legal aspects problems are explained. The paper names the most famous startups exchanges platforms and reveals investors algorithm to use such platforms nowadays. The research also considers the influence of coronavirus epidemy to attract money and figures out some possible consequences for venture investment trends, as a result - the key future threats of the market are named. Finally, the crucial importance of venture investments to cultivate innovation has been explained and proven by this research.
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