Role of venture financing in stimulating the innovative enterprise development

Grebennyk Natalya
Candidate of Economic Sciences, Associate Professor, Department «Economics of the Enterprise and Organization of Entrepreneurial Activity», Odesa National Economic University, Odesa, E-mail:nataly.grebennyk@gmail.com, ORCID ID: https://orcid.org/0000-0002-1554-0697

Bratuta Serhii
Head of the Limited Liability Company «Partner 3», Odesa, E-mail:bratuta.sergey@gmail.com, ORCID ID:

Cite this article:

Grebennyk N., Bratuta S. (2024) Role of venture financing in stimulating the innovative enterprise development. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Rol venchurnoho finansuvannia u stymuliuvanni innovatsiinoho rozvytku pidpryiemstv; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 1-2 (314-315), pp. 126-137.

Abstract

The purpose: a comprehensive analysis of the impact of venture financing on the long-term development and transformation of traditional business structures. The research focuses on the identification and adaptation of key tools and methods used in the innovation sector to improve the efficiency and competitiveness of traditional companies. Methodology: comprehensive literature review of scientific publications on venture financing; quantitative analysis of data on the volume of venture financing; macroeconomic analysis, study of economic trends; qualitative analysis of the interaction of venture financing participants; comparison of various forms of venture financing; analysis of the impact of venture financing on various business sectors. Scientific novelty: venture finance is more complex than simply investing in start-ups, covering a variety of financial instruments and strategies, from macroeconomic analysis to innovation support. Venture capitalists, business angels, incubators and accelerators play a key role in the development of startups, providing not only capital but also important resources and knowledge. It promotes innovation, development and growth. In traditional business, venture funding stimulates digital transformation, expansion of markets and introduction of new business models, increasing adaptability to market challenges. It also supports technological upgrading, environmental sustainability, supply chain development and social innovation. The success of venture financing depends on the quality of management, innovation potential, market conditions and financial stability. The risks for startups are higher, but the potential rewards are significant, unlike traditional businesses, where risks and rewards are more balanced. Venture capital plays an important role in the long-term success and sustainability of businesses, contributing to job creation and growth. The practical significance lies in expanding the understanding of venture financing as a key tool for innovation and business development. This emphasizes the importance of various financial strategies to stimulate the growth of startups and adapt traditional business to modern challenges.

Keywords

innovation, venture financing, traditional business, transformation, startups.

JEL classification: G170; G240; D250; DOI: https://doi.org/10.32680/2409-9260-2024-1-2-314-315-126-137

UD classification: 330.356.3

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