Analysis of the Factors that Affect the Success of Venture Project

Author(s):  
Лилит Керопян ◽  
Lilit Keropyan

The development of the venture investment industry is accompanied by a large number of unsuccessfully completed projects. As a result, financial resources, time and effort of entrepreneurs are lost, and often the desire to continue to engage in innovative business is lost. In this regard, it becomes an urgent task to improve the management of innovative projects involving venture capital at an early stage of their implementation. The completed research, based on the results of surveys of Russian entrepreneurs and experts of venture and grant funds, as well as to formulate practical recommendations for beginning entrepreneurs.

Author(s):  
Olha Melnyk ◽  
◽  
Marta Adamiv ◽  
A. Omelianchuk ◽  
◽  
...  

In the article it is established that today in Ukraine the development of venture investment of innovative enterprises is at an early stage and is characterized by a number of problems. The dynamics of venture capital in Ukraine shows that their number and capitalization have been growing rapidly during the research period 2011-2019, and this growth continued even after the crisis. It is worth noting that venture investments in Ukraine are made in points, in particular they are more concentrated in Kyiv and Lviv. The largest share of venture capital is international capital. The most attractive sectors for venture investment in Ukraine are software, online services and IT equipment. According to the results of studying domestic and foreign experience of venture investment, a number of obstacles in the development of venture business in Ukraine have been identified: instability of the external environment; underdeveloped venture infrastructure; low level of efficiency of regulation of venture investment at the legislative level; low liquidity of venture capital due to the low level of stock market development; the predominance of foreign origin of venture capital and the shortage of domestic investment resources; underestimation of the role of small and medium business in the innovative development of the economy; low level of quality of venture fund management; weak information support and insufficient transparency of venture business. Based on the best foreign experience of venture business and existing problems in the field of venture investment in Ukraine, a technology for attracting venture capital at the stage of negotiating and concluding a venture investment agreement has been developed. The proposed technology will provide an opportunity to form a unified and clear basis for concluding a venture investment agreement between foreign venture investors and domestic innovative enterprises. The use of the proposed technology in the domestic practice of venture investment will increase the attractiveness of cooperation with Ukrainian innovation organizations in the eyes of foreign investors. This, in turn, will intensify the attraction of foreign investment in the development of the innovative sector of the national economy.


2021 ◽  
pp. 30-35
Author(s):  
Hanna Sitchenko

Problem setting. The current state of scientific researching the issue of venture investment of innovation activity suggests that the presence of mixing in research of diverse concepts in the field of venture investment innovation, reflection in regulations of the uncoordinated categorical definitions, leads to negative consequences in the form of legal uncertainty or even conflict, that significantly slows down the process of attracting investment. Therefore, the idea is that the building effective mechanisms of civil law regulation of venture investment of innovation activity of Ukraine in order to accelerate the commercialization of innovations as a major driving force of economy during the spread of COVID-19. Analysis of recent researches and publications. O. M. Vinnyk, S. O. Vikhrov, S. V. Hlibko, T. S. Hudima, Y. M. Zhornokuy, D. V. Zadykhaylo, O. YU. Kampi, O. P. Podtserkovnyy, V. V. Poyedynok, V. Y. Polatay, O. E. Simson have been researched the subject of innovation and investment activities. Theirs scientific minds formed the basis of this research, but the author has analyzed the current state of legislation in the given field and concluded that, in terms of civil law regulation of legal relations aimed at investing in innovation sphere, does not meet the global vector of development. To date, no systematic approach to building a holistic regulatory framework for the basic principles of formation and regulation of the venture capital market in Ukraine. So in the conditions of legislation of civil law the issues of venture investment of innovation activity in Ukraine remains open for new discussion, and the relevance of this study is obvious. Target of research is to analyze and identify the concept of venture investment of innovation activity, to determine its essence and characteristics in the civil law aspect. Article’s main body. Venture capital investment, as an element of the national innovation system, ensures the effective implementation of venture capital in the activities of private legal entities operating in the field of innovation, on a corporate or contractual basis. The high risks of such investment are due to the novelty of commercialized innovations and the early stage of bringing new high-tech products to market, created on their basis, and are reduced using of special legal forms and tools. Venture investment of innovation activity as a civil law category is a type of activity of venture investors to acquire shares (shares in the authorized capital) of legal entities of private law, carrying out innovative activities at an early stage of bringing their innovative product to market or (and) its scaling, aimed at obtaining a high level of profit from the subsequent sale of these shares (shares), characterized by high risks and long-term return on invested capital. Conclusions and prospects for the development. Analysis of the concept under this research allows us to conclude that venture investment of innovation activity is special value to the economy nowadays, demonstrating high growth potential during the spread of COVID-19. Therefore, its legal definition and legislative consolidation, taking into account the essence and characteristics, is a particularly urgent need for today's civil law regulation.


Author(s):  
Michael Kinch

Despite and arguably because of the enormous public health benefits arising from the introduction of new medicines, the industry is in the midst of crisis. We detail in this chapter the decline in research and development efficiency, which has been termed “Eroom's Law,” a playful inversion of the bettern known Moore's Law of Computing. An explanation of declining efficiency follows as is a brief summary of some remedies taken by many biopharmaceutical entities, including the abandonment of therapeutics targeting particularly difficult indications such as Alzheimer's disease and antibiotics. We also convey how the industry has developed into a sort of food chain, with smaller companies and government grants supporting the earliest stages of research, which are then acquired by medium-sized companies, which in turn are consolidated into large companies. This food chain is fundamentally in doubt based on shrinking Federal spending on research combined with a decline in venture capital support for early-stage start-ups.


2014 ◽  
pp. 1512-1529
Author(s):  
Margee Hume ◽  
Paul Johnston ◽  
Mark Argar ◽  
Craig Hume

This chapter focuses on addressing: the screening criteria used to evaluate potential new energy- related technology ventures in two international markets, namely the Philippines and Brazil; adopting a single case methodology to communicate the firm strategies used to attract investment and the behaviour adopted to try and effectively and efficiently enter the global market; and based on the descriptions and behaviours found, the case offers a holistic entry framework which will advance understanding of transcultural marketing and entry needs of the Philippines and Brazil regarding new energy-related innovations. This chapter uses qualitative case analysis of a single case technology commercialisation organisation and the experience of entering two new world markets: the Philippines and Brazil. These two markets have been selected as they are focused on energy securitisation, possess a distinct business culture related to early stage and Venture Capital (VC) investment and the behaviour of VCs, and are currently commercially attractive and interested in international investment and new technology market development (Broad & Cavanagh, 2011; Castells, 2011). This chapter reports on data focused on investment activity within the technology market in Brazil and the Philippines and cultural factors affecting investment and market entry specific to these markets. The chapter integrates the cultural issues of each destination with current literature and develops a checklist of actions related to each market destination. The chapter will assist with the success of attracting investment, sales growth, and performance in the new market and enhance profitability of the venture. The chapter will offer specific actions related to the entry and investment in each market and contribute to international marketing knowledge. This chapter offers a new transcultural marketing perspective on international venture capital exploring and learning from these two diverse emerging world markets. The lessons learnt from each market creates a shared and advanced outlook on seeking successful venture capital in newer global markets (Broad & Cavanagh, 2011).


2021 ◽  
pp. 174-191
Author(s):  
Tetyana Demchenko ◽  

In the context of Ukraine’s integration into the world market, there is a growing interest in creating a control system for all stages of venture capital activities. The mechanism of effective management of venture activities of an enterprise should become a tool for establishing this system. The system of information flows is of great importance, which provides information to the process of making management decisions on a risky innovative project at a venture capital enterprise. The purpose of the venture business is to make a profit on the invested funds [1]. Unlike simple investment, venture capital is the most risky form of capital investment. However, if the project is successful, venture capital investment is the most profitable. Venture investment is, on the one hand, a way of financing the innovative vector of the economy, on the other, an innovative form of entrepreneurship. The main goal of venture capital financing is that the monetary capital of some entrepreneurs and the intellectual capabilities of others (original ideas or technologies) are combined in the real sector of the economy in order to bring profit to both types of entrepreneurship in a new company.


2019 ◽  
Vol 55 (2) ◽  
pp. 621-651 ◽  
Author(s):  
Amit Bubna ◽  
Sanjiv R. Das ◽  
Nagpurnanand Prabhala

Although venture capitalists (VCs) can choose from thousands of potential syndicate partners, many co-syndicate with small groups of preferred partners. We term these groups “VC communities.” We apply computational methods from the physical sciences to 3 decades of syndication data to identify these communities. We find that communities comprise VCs that are similar in age, connectedness, and functional style but undifferentiated in spatial location. Machine-learning tools classify communities into 3 groups roughly ordered by their age and reach. Community VC financing is associated with faster maturation and greater innovation, especially for early-stage firms without an innovation history.


2002 ◽  
Vol 47 (02) ◽  
pp. 243-267 ◽  
Author(s):  
FRANCIS C. C. KOH ◽  
WINSTON T. H. KOH

This paper provides an overview of the venture capital industry and its development in Asia and Singapore. Venture capital plays an important role in innovation and economic growth. Indeed, the resurgence of the United States as a technology leader is intimately linked to the success of Silicon Valley. As Singapore enters the next phase of economic development, the creation of internal engines of growth is an urgent task. The Singapore government has done much to provide an environment for entrepreneurship to thrive. Its success at replicating the Silicon Valley culture will be important for Singapore's future economic success.


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