Venture Financing As a Form of Interaction Between Small and Large Businesses

The market economy is currently characterized by a high mutual influence of the activities of various business entities on each other. Cooperation between small and large businesses will allow both parties to achieve maximum efficiency. The article is devoted to the consideration of venture financing as a factor in ensuring the growth of the small and medium-sized business sector, particularly in the sector of innovation.

Venture financing in the era of increasing epidemiological risks

The relevance of the study of venture financing development in the era of increasing epidemiological risks is considered within the current situation in society, namely the significant impact of COVID-19 on all sectors of social and economic development. This shows the urgency of a systematic justification of current trends and peculiarities of venture financing development, taking into consideration the COVID-19 situation. The above-mentioned aspects define the purpose of our study. The theoretical basis of our study means the analysis of the specifics and priorities of venture financing, considering the timeframe from venture financing formation to nowadays. Thus, the stages of evolution of views on venture financing are highlighted. The article examines the dynamics of venture financing globally, as well as the change of relevant indicators in Europe, Asia and the United States. In particular, along with the analysis of the total amount of venture financing in each of the considered markets, the volumes of venture financing agreements that were carried out for the first time were estimated. This allowed us to analyze the relevant trends and make conclusions on the priority objects for attracting the resources of venture investors in the era of growth of epidemiological risks, depending on the experience of venture capitalists. The article compares venture funding and the incidence of COVID-19 in some countries in Europe, Asia and the United States. The approaches of European experts to the assessment of the impact of COVID-19 on venture financing are revealed. The analysis of the relevant calculations provides the possibility to structure the priorities of modern venture investors depending on the sectoral distribution of COVID-19 influences. The practical value of the study is considered within a comprehensive analysis of trends in venture financing and assessment of changes in the priorities of venture investors, considering the increasing epidemiological risks. The research may be useful both in the context of developing public venture financing policies and within developing venture financing strategies at the business level.

VENTURE CAPITAL FUNDING AS A FACTOR OF THE INNOVATIVE DEVELOPMENT

The paper justifies the necessity to improve the mechanisms of venture capital funding in Kazakhstan for sustainable and effective development of the country. The role of venture capital funding in the innovative development of the countries is investigated on the base of study of the experience of such countries as USA, Canada, Europe, India, and China. The recent research works related to the venture capital funding in different aspects are reviewed. The innovative activity and venture investments in the Republic of Kazakhstan were analyzed. The paper investigates the features of venture capital funding in Kazakhstan. The investigation results show that Kazakhstan system of venture investment is at its initial stage of development, and there are no tangible results of venture field development yet. The conducted research allowed revealing the factors limiting the development of venture investment in Kazakhstan, these are: poor systematic monitoring of funds efficiency invested by the national institutes; lack of effective strategies of venture capital funding; low innovative activity and intensity of venture appearance; uncertainty and gaps in the legislative base related to venture financing; absence of tax concessions and preferences not tied to FEZ or technological parks; absence of strong institutional venture investors; low capacity of securities market and scarcity of its instruments. The work suggests a set of measures directed on activation of venture financing. The implementation of the suggested measures assumes the increased control over the effectiveness of quasi-public structures investments and venture incomes, and creation of conditions for venture capital funding development. The research results can be a cut-off point for further investigations in the field of venture capital funding related to the innovative development of the country.

ИННОВАЦИОН ЛОЙИҲАЛАРНИ ВЕНЧУРЛИ МОЛИЯЛАШТИРИШДА РИСКЛАРНИ САМАРАЛИ БОШҚАРИШ УСУЛЛАРИ МЕТОДЫ ЭФФЕКТИВНОГО УПРАВЛЕНИЯ РИСКАМИ ВЕНЧУРНОГО ФИНАНСИРОВАНИЯ ИННОВАЦИОННЫХ ПРОЕКТОВ METHODS FOR EFFECTIVE RISK MANAGEMENT OF VENTURE FINANCING INNOVATIVE PROJECTS

Аннотация. Мақолада миллий иқтисодиётни ривожлантиришда инновацион лойиҳаларни амалга оширишнинг зарурлиги ва аҳамияти кўриб чиқилган ҳамда инновацион лойиҳаларни венчурли молиялаштиришда келиб чиқадиган рискларнинг ўзига хос хусусиятлари ва уларни самарали бошқариш усуллари баён этилган. Калит сўзлар: Инновацион лойиҳа, венчурли молиялаштириш, инвестиция компанияси, бошқарув компанияси, венчур фонди, инновацион венчур рисклар, рискларни бошқариш усуллари. Аннотация. В статье рассматриваются необходимость и значение финансирования инновационных проектов в развитии национальной экономики, а также особенности рисков, возникающих при венчурном финансировании инновационных проектов и методы их эффективного управления. Ключевые слова: инновационный проект, венчурное финансирование, инвестиционная компания, управляющая компания, венчурный фонд, инновационные венчурные риски, методы управления рисками. Abstract. The article highlights the need and importance of financing innovative projects in the development of the national economy, as well as the features of the risks arising from venture financing of innovative projects and methods of their effective management. Key words: innovative projects, venture financing, Investment Company, Management Company, venture fund, innovative venture risks, risk management methods.

CORPORATE-STATE MODEL OF VENTURE FINANCING: EXPERIENCE OF EUROPEAN COUNTRIES

The article is devoted to the model of venture financing, which reflects the country-regional differentiation and its key distinctive features. It is noted that more than 40% of the largest European multinational companies annually allocate quite large-scale financing for the implementation of corporate venture programs. Among the factors that determine the high efficiency of the corporate-state model of venture financing, it should be noted first of all the high level of state regulation of innovation processes, the presence of large industrial companies with their own research centers and departments, and a developed and highly capitalized banking system. an active strategic partner of the business sector. National and regional innovation systems were formed as a result of complex interaction of scientific and technical, technological, socio-economic, political, legal and institutional-regulatory factors of innovative development of certain countries and regions. At the same time, the most decisive influence on their formation and further evolutionary development was exerted by scientific and technological determinants, which together form the global configuration of venture financing architecture and ensure effective consolidation of real business capital of some business structures and intellectual resources of others. Venture financing models provide large-scale development, implementation and use of the latest technical, technological and information tools in production and non-production areas and focus on the maximum concentration of material, technical and financial resources in the highest priority areas of research and development. This strategic goal is most implemented today in countries with a market model of venture financing, where it has long proven its high efficiency as a significant source of innovative development. At the same time, the deepening of techno-globalization processes gives a strong impetus to venture business, transforming it in line with global economic trends and stimulating scaling up and diversification of regional and sectoral-sectoral structure of venture capital.

ESSENCE AND ECONOMIC NATURE OF COUNTRY-REGIONAL BENCHMARKING MODELS IN ORDER TO DETERMINE THEIR COMPETITIVE FACTORS

The article is devoted to the current typification of country-regional models, which is based mainly on criteria for the scale and structure of venture financing, the degree of development of national financial markets, the level of concentration of bank capital and participation of banks in corporate sector management, the availability of venture capital financing. structures, share of bank capital in venture financing of investment projects, share of corporate sector in financing of venture funds, tupenya of mergers and acquisitions, the protection of minority investors and the concentration of ownership in the real economy. The criteria of classification of country-regional models of venture financing of innovative projects that cannot fully reflect its impact on the structural dynamics of national and global innovation development and should be supplemented by a number of additional criteria are considered. It is also the market model most widely used in the Anglo-Saxon countries. The presence of the best international business schools in the world is also a major competitive advantage of the market model of venture financing for innovation; deep cooperative links between universities, government laboratories and private companies. The role of the state in supporting the venture industry is analyzed, since in the market model it consists in direct investment of state funds into innovative companies (ie participation in capital) and high-tech programs and projects, as well as implementation of guarantee programs for the development of venture activity and creation of proper regulatory, organizational-economic, financial-investment and credit-tax conditions of its support. The strategic goal is most realized today in countries with a market model of venture financing, where it has long proven its high efficiency as a significant source of innovative development. And, the deepening of the processes of technoglobalism gives the venture business a powerful impetus for development, transforming it in accordance with the impact of global economic trends and stimulating the scale-up and diversification of the regional and sectoral-sectoral structure of venture capital investments.

The impact of lending availability and conditions for SMEs on the global development of venture financing systems

Research background: The current situation, which caused global economy recession, has shown that all participants of the venture capital market are not ready for such occasions. Small and medium-sized businesses found themselves in a in a pickle that completely limited the ability to conduct business in most sectors of the economy and venture investors had to urgently reassess their capabilities and their requirements for investment objects. Different events have been constantly influencing the venture financing system to change and develop during decades of its existence. The most important changes are happening today in new world order dictated by COVID-19. Purpose of the article: The aim of this article is to analyse the current state of venture financing, find out how VC is related to the ICT development in European countries, compare VC to other lending mechanisms for SMEs and assume how the global venture industry may be changed by global isolation. Methods: The ARDL model for panel data is used to assess the impact of ICT developments on VC. Comparative and statistical analysis of available datasets on financing mechanisms is conducted. Findings & Value Added: The results show that the increase in value-added in the ICT sector is driving the growth of venture capital in leading countries in terms of innovation activity. Venture capital will be forced to transform towards globalization and centralization, but with the delegation of authority to local representatives, through new communication forms. Countries with high ICT development may be more attractive for venture financing.