The eсonomiс nature of venture capital as a source to finance investment risk projects

Abstract

The problem of the operation of venture capital in Ukraine as an alternative source of financing investment projects has been considered in the article. Venture investment is a specific kind of investments in high-tech manufacturing, the prospect of significant revenue which has a high degree of risk. To avoid completely the threat of loss of capital invested in venture funding is almost impossible because innovation and risk are the two interrelated categories: it is very difficult to predict what kind of innovation will be successful in the market and which will not be in demand. It should also be noted that the present legal framework that regulates the formation of venture capital and venture capital funds in Ukraine needs to be improved by making appropriate changes and additions to tax, customs and banking law, the establishment of appropriate legal mechanisms for the development of the secondary securities market, including securities exchange of venture enterprises, electronic trading systems etc. The aim of the article is to clarify the nature of venture capital, to determine its role in the economy and to assess the predictability of time series of venture investment in Ukraine. Scientific novelty is the use of Hurst parameter for assessing the predictability of time series, the number of venture СIІ, value of the assets of venture СІI, net asset value (NAV) of venture СIІ, NAV share in venture СIІ in NAV of all СIІ and measures that will affect the effective organization of the markets of venture capital in Ukraine have been suggested. The results are of practical importance for the venture business with tactical and strategic planning of behavior in the market to finance investment projects. This theme has the prospect of further research, which will be based on the study of three global models such as American, European and mixed, which in turn will make it possible to develop criteria for the efficient functioning of markets and venture capital investments in Ukraine.