Regarding issues of the concept of venture investment of innovative activity

2021 ◽  
pp. 30-35
Author(s):  
Hanna Sitchenko
Keyword(s):  
Venture Capital ◽  
Early Stage ◽  
Civil Law ◽  
Innovation Activity ◽  
High Tech ◽  
Negative Consequences ◽  
Venture Investment ◽  
Current State ◽  
Law Regulation ◽  
Legal Entities

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.

scholarly journals Trends in innovation and investment development of high-tech enterprises

2019 ◽  
Vol 7 (5) ◽  
pp. 79-92 ◽  
Author(s):  
I. A. Mandych ◽  
A. V. Bykova
Keyword(s):  
Venture Capital ◽  
Capital Market ◽  
Capital Investment ◽  
Growth Promotion ◽  
International Market ◽  
High Tech ◽  
Venture Capital Investment ◽  
Success Stories ◽  
Venture Investment ◽  
Market State

The article deals with the main prospects and problems of investing in innovative activities of high-tech enterprises. The principles of construction of venture investment and the mechanism of venture financing of a project when creating technological innovation were investigated. The overview of the Russian venture capital market shows the positive dynamics associated with the termination of a significant outflow of funds from the market and the growth in the number of newly created funds. There were also revealed promising areas for the development of the venture capital market and support high-tech enterprises, namely: success stories; low profitability of traditional investment instruments; the growth of activity of state corporations; growth in the number of startups focused on the international market; state support; angel investing growth; promotion of VC and innovations; the emergence of smart industries. Such barriers to the development of venture capital investment as the disunity of the market, the lack of co-investment. There were made conclusions about the prospects of engaging businesses in the processes of research and development of new products, as well as its promotion in promising markets among partners with special competencies, and that human resources are becoming the most important component of the success of high-tech industries.

scholarly journals 9.1. ЦИФРОВАЯ ТРАНСФОРМАЦИЯ ПРОМЫШЛЕННОСТИ РОССИИ: СОСТОЯНИЕ И ПЕРСПЕКТИВЫ

2020 ◽  
Author(s):  
G.A. Vlaskin ◽  
A.E. Ivanov ◽  
A.E. Ivanov ◽  
A.E. Ivanov
Keyword(s):  
Industrial Policy ◽  
Early Stage ◽  
Digital Economy ◽  
Digital Transformation ◽  
Innovation Activity ◽  
Domestic Economy ◽  
Industrial Enterprises ◽  
Current State ◽  
Russian Industry ◽  
High Degree

В статье проведен анализ текущего состояния цифровизации российской промышленности, рассмотрены проблемы и выявлены перспективы трансформации промышленности в цифровой экономике. Мониторинг процесса выявил достаточно высокую степень первичной компьютеризации, растущую включенность промышленных предприятий в цифровой обмен с поставщиками и потребителями, динамичное развитие отечественного программного обеспечения. Одновременно он показал, что развитие цифровой трансформации российской промышленности по сравнению со странами-лидерами этого глобального процесса находится пока еще на начальной стадии, а достижение поставленных амбициозных задач требует высокой инновационной активности и грамотной промышленной политики. В работе раскрываются существующие барьеры и трудности на пути реализации этих требований, а также предлагаются шаги по их преодолению в интересах ускорения развития отечественной экономики в целом.The article analyzes the current state of digitalization of the Russian industry, considers the problems and prospects of transformation of industry in the digital economy. Monitoring of the process revealed a sufficiently high degree of primary computerization, the growing involvement of industrial enterprises in the digital exchange with suppliers and consumers, the dynamic development of domestic software. At the same time, he showed that the development of digital transformation of the Russian industry in comparison with the countries-leaders of this global process is still at an early stage, and the achievement of ambitious goals requires high innovation activity and competent industrial policy. The paper reveals the existing barriers and difficulties in the implementation of these requirements, and proposes steps to overcome them in order to accelerate the development of the domestic economy as a whole.

scholarly journals ESSENCE AND SPECIFICS OF VENTURE INVESTMENT INTO INNOVATION ACTIVITY

2021 ◽  
Vol 4 (39) ◽  
pp. 362-367
Author(s):  
Yu. Zhornokui ◽  
L. Doroshenko ◽  
O. Ruban ◽  
D. Тymoshenko
Keyword(s):  
Venture Capital ◽  
Public Investment ◽  
Innovation System ◽  
Private Investment ◽  
Global Strategy ◽  
Innovation Activity ◽  
Corporate Capital ◽  
Venture Investment ◽  
Private Investments ◽  
Venture Company

Abstract. On the basis of the analysis of scientific approaches and practical application, the authors have concluded that venture investment of innovation activity is a type of entrepreneurship based on the ability of an entrepreneur to accumulate investments from various sources, which is focused on the practical use of technical and technological innovations that are assessed as highly profitable, and which is aimed at fulfilling scientific and technical projects that have not been tested in practice, as well as at improving existing ones in order to exercise intellectual property rights and make a profit and (or) other effect (benefits). It has been noted that the analysis of the essence of venture investment of innovation activity at the current stage of the development of the National Innovation System, suggests that inter-temporal changes of public investment growth, which should act as an institutional magnet, are much greater than the dynamics of private investment. One of the key problems of the modern Ukrainian model of the development of venture industry, which is implemented at the state level, is the imbalance between public and private investments, which must be promptly eliminated. The temporary lack of private investments in Ukraine has been so far successfully replaced by public investments, but it is necessary to create a stable market for both private Ukrainian and foreign venture capital for the effective implementation of the global strategy of building an innovative economy. The authors have substantiated the position that the process of venture investment into innovation activity consists of two stages: 1) invention and development of the object of venture investment and 2) implementation and realization of the obtained result into production, services sector, etc. The specified stages can be combined or considered separately depending on the specialization and (or) specifics of the venture company. An approach to the recognition of two most common forms of venture investment into innovation activity has gained the development. These forms are: 1) investment into corporate capital of companies and 2) investment loans. However, both of these forms are often used simultaneously in practice. The essence of venture investment into innovation activity abroad compared to Ukraine, is the identity of the ultimate purpose of venture and innovative entrepreneurship, which is to make a profit through the industrial introduction of advanced technologies (materials, products, production methods, etc.), despite the fact that methods and means to achieve this purpose are different. Thus, sources of investment of venture entrepreneurship are diversified in different countries from purely private (through specially created structures) to a combination of private and public investment resources. It has been substantiated that venture investments are currently the most affordable alternative to loan financing. One can confidently state that this form of investment is the most profitable for the recipient company, because the previous experience of investors always has a positive effect on a venture company. Keywords: venture entrepreneurship, innovation activity, an investor, investment, venture capital, corporate capital. JEL Classification D92, E22             Formulas: 0; fig.: 0; tabl.: 0; bibl.: 11.

scholarly journals FEATURES OF PUBLIC ADMINISTRATION IN SHAPING STRATEGY OF VENTURE INVESTMENT OF BUSINESS ENTERPRISES

2020 ◽  
Vol 6 (4) ◽  
pp. 125-132
Author(s):  
Ivan Parubchak ◽  
Halyna Hrynyshyn
Keyword(s):  
Venture Capital ◽  
Enterprise Management ◽  
High Tech ◽  
Initial Development ◽  
Strategy Of Development ◽  
Venture Investment ◽  
Logical Method ◽  
Business Entities ◽  
High Level ◽  
Structural Methods

The purpose of this study is to define the content of the category “venture investment”, and to establish the relationship between the concepts of “venture investment” and “venture capital”, to analyze the state of venture investment in Ukraine and determine its role in innovative development of the economy, to systematize international experience consider the possibility of its adaptation in Ukraine. Object of research: venture capital in the system of financing innovation processes in the modern economy. The methodological basis of the study is a set of general scientific and special methods of cognition. Methods of analysis and synthesis, generalization and scientific abstraction were used in the formation of the conceptual and categorical apparatus. The analysis of approaches to understanding the essence of venture investment, its components was carried out using dialectical and systemic-structural methods. The application of the historical and logical method, induction and deduction made it possible to study the genesis of the theory of economics and enterprise management, the factors of the strategy of development of venture investment of business entities. Within the framework of the study of the current state of venture investment, calculation and analytical methods of observation, measurement, analysis and comparison are used. Conclusions. Based on the above study, we can assume that venture capital is a combination of financial, human and intellectual resources, which with a high level of risk is invested in the development and implementation of high-tech products of companies that are in their infancy and initial development and are not listed on the stock market and in case of success brings its owner a profit that is much higher than the industry average. Despite the riskiness of investments, venture investments have a number of attractive prospects and advantages. As world experience shows, venture-backed companies are better prepared to innovate, grow faster and create more jobs in the future.

Analysis of the Factors that Affect the Success of Venture Project

2018 ◽  
Vol 7 (1) ◽  
pp. 34-41
Author(s):  
Лилит Керопян ◽  
Lilit Keropyan
Keyword(s):  
Venture Capital ◽  
Early Stage ◽  
Financial Resources ◽  
Venture Investment ◽  
Urgent Task ◽  
Practical Recommendations

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.

scholarly journals FORMATION OF THE INNOVATIVE PROJECT FINANCING MODEL IN MODERN CONDITIONS

2019 ◽  
Vol 5 (2) ◽  
pp. 65 ◽  
Author(s):  
Viktoriia Kachuriner ◽  
Malvina Hrushko
Keyword(s):  
Early Stage ◽  
The State ◽  
Research Centre ◽  
Innovation Activity ◽  
High Tech ◽  
Joint Research ◽  
Activity Increase ◽  
State Reduction ◽  
The World ◽  
Research Centres

The state of development of the leading countries of the world proves that its main factors are innovative high technologies, new equipment, a new organization of labour and production, a new motivation for entrepreneurship. They ensure the economic stability of micro and macro systems, their competitiveness both in the domestic and foreign markets. Given the limited nature of state financial resources, the problem of finding additional sources of financing for the purpose of activating the development of innovation activity in Ukraine is becoming increasingly urgent. Today, many countries are actively implementing modern models of financing of innovative projects. In many countries, hybrid financial instruments are transformed in the modern environment into hybrid investment models such as crowdfunding and crowdinvesting. Research of existing models of innovative economic development is always relevant, development tendencies are constantly changing under the influence of global conditions. In Ukraine, it is possible to predict the development of such innovative models as: a resource model without high-tech production (natural resources – production – money); innovative model (transformation of money for research into knowledge – transformation of knowledge into skills of workers and innovations – transformation of innovations into goods – money); intellectual-donor model. An analysis of the world experience of using such forms of activation of innovation activity in the USA, Japan, Western Europe, the CIS, and other countries proves their relevance and prospects for Ukraine. At the same time, the efficiency of the functioning of innovation centres is largely determined by the proper level of financing of their activities, especially at an early stage. The model “university – innovation centres” aims to overcome the gap between education and the implementation of the knowledge gained in creating innovation. Within the framework of this model, two blocks are key: a block of joint research centres “university – industry” and a block of the creation of innovation centres and startup. The advantages of such a mechanism are: firstly, for business – direct state support for innovations, the possibility of investing under the state guarantees; and secondly, for the state – reduction of budgetary expenditures at the expense of funds attracted in the sphere of innovation activity, increase of innovation activity of priority sectors of the economy, distribution of innovative risks. The model of joint research centres “university – business structure” provides two variants of financing of such centres. The first option is based on the formation of a research centre in the form of corporation, which may include universities, private investors, local authorities, other sponsors and stakeholders. Traditionally, Ukraine has significant potential in some important fields of science, such as medicine, physics, astronomy, biology, chemistry, materials science, space science, and Earth science. Participation in Horizon 2020 allows creating additional opportunities for the successful development of these branches of science.

scholarly journals Technology of establishing cooperation between venture investor and innovative enterprise

2021 ◽  
Vol 2021 (1) ◽  
pp. 167-176
Author(s):  
Olha Melnyk ◽  
◽  
Marta Adamiv ◽  
A. Omelianchuk ◽  
◽  
...  
Keyword(s):  
Venture Capital ◽  
Early Stage ◽  
Information Support ◽  
Domestic Investment ◽  
Stock Market Development ◽  
Foreign Experience ◽  
Low Level ◽  
Venture Investment ◽  
Investment Agreement ◽  
Venture Business

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.

Strategic alliances, venture capital, and exit decisions in early stage high-tech firms

2013 ◽  
Vol 107 (3) ◽  
pp. 655-670 ◽  
Author(s):  
Umit Ozmel ◽  
David T. Robinson ◽  
Toby E. Stuart
Keyword(s):  
Venture Capital ◽  
Strategic Alliances ◽  
Early Stage ◽  
High Tech ◽  
Exit Decisions

scholarly journals VENTURE INVESTMENTS AS A PROSPECTIVE DIRECTION OF ACTIVATION OF INNOVATIVE ACTIVITY

2020 ◽  
Vol 1 (2) ◽  
pp. 45-51
Author(s):  
Halyna Hrynyshyn
Keyword(s):  
Venture Capital ◽  
Maximum Effect ◽  
High Tech ◽  
Main Function ◽  
Advantages And Disadvantages ◽  
Venture Investment ◽  
Methods Of Analysis ◽  
Venture Financing ◽  
Structural Methods ◽  
Innovation Processes

The purpose of this article is to study the intensification of venture investment in innovation processes in Ukraine, to identify problems and promising areas of development of the venture industry. The article considers the essential characteristics of the economic category "venture investments" and "investments", comparative analysis and the relationship between them. The main advantages and disadvantages of venture investment, values and main forms are highlighted. The sequence of stages of venture financing and types of schemes of venture financing are given. Venture capital entities are considered. The main stages of formation of the venture industry in Ukraine are revealed. Methods of analysis and risk assessment of the investment project are offered. The main types of strategies for minimizing risks in venture investing are presented. Among the considered strategies the most promising are strategies implemented with the participation of third parties, as in this case the maximum effect from a point is reached view of the national economy. Object of research. Venture capital in the system of financing innovation processes in the modern economy. The subject of the research is theoretical methodological and applied aspects of the functioning of venture capital as a source of financing innovation processes in Ukraine. The methodological basis of the study is a set of general and special methods of cognition. Methods of analysis and synthesis, generalization and scientific abstraction were used in the formation of the conceptual and categorical apparatus. The analysis of approaches to understanding the essence of venture investment, its components was carried out using dialectical and systemic-structural methods. The application of the historical-logical method, induction and deduction made it possible to study the genesis of the theory of economics and enterprise management, the factors of the strategy of development of venture investment of business entities. Within the framework of the study of the current state of venture investment, calculation and analytical methods of observation, measurement, analysis and comparison are used. Conclusions. It is proved that venture investment only has a positive effect on accelerating innovation processes in the economy when it performs its main function – investing in small innovative enterprises that implement their progressive ideas, providing positive innovative changes in the production structure in favor of high-tech systems. The essence of the influence of venture capital on innovation processes is manifested only through its main function – venture investment.

Opportunity Cost of Capital for Venture Capital Investors and Entrepreneurs

2004 ◽  
Vol 39 (2) ◽  
pp. 385-405 ◽  
Author(s):  
Frank Kerins ◽  
Janet Kiholm Smith ◽  
Richard Smith
Keyword(s):  
Venture Capital ◽  
Risk Premium ◽  
Opportunity Cost ◽  
Cost Of Capital ◽  
Early Stage ◽  
High Tech ◽  
Holding Period ◽  
Management Fees ◽  
One Year ◽  
Risk Free Rate

AbstractWe use a database of recent high tech IPOs to estimate opportunity cost of capital for venture capital investors and entrepreneurs. Entrepreneurs face the risk-return tradeoff of the CAPM as the opportunity cost of holding a portfolio that necessarily is underdiversified. For early stage firms, we estimate the effects of underdiversification, industry, and financial maturity on opportunity cost. Assuming a one-year holding period, the entrepreneur's opportunity cost generally is two to four times as high as that of a well-diversified investor. With a 4.0% risk-free rate and 6.0% market risk premium, for the sample average, we estimate the cost of capital of a well-diversified investor to be 11.4%, which equates to 16.7% before the management fees and carried interest of a typical venture capital fund. For an entrepreneur with 25% of total wealth invested in the venture, our corresponding estimate of cost of capital is 40.0%.

Sign in / Sign up

Export Citation Format

Share Document