VENTURE CAPITAL AS «BASE» OF THE SUCCESSFUL STARTUP

Abstract

The process of creating new industrial production and effective use of innovation potential is increasingly carried out with the participation of startup companies as a form of small entrepreneurship. The subject of research is the process of investing innovation start-up companies by venture capital. The article is a theoretical justification for the role of venture capital as an alternative financing of start-ups under uncertainty and risk innovative environment to determine its strengths and weaknesses. The study used methods of analysis, synthesis, induction and deduction – for determining the principles of financing of startups through venture capital; analogy, comparing, ordering and comparison – to identify strengths and weaknesses of venture investment, risk identification innovative environment; Graphical analysis – to characterize the relationship between market participants in the application of venture capital for the development of innovation. In the article the impact of venture capital on the creation and further development of new business projects. The general concept of venture capital and main areas of application. Characterized basic forms of investment startups. Advantages and disadvantages of attracting venture capital to develop new businesses. Proved that the use of venture capital can be an alternative when looking for ways to invest startup, which can be described as a new company that is at the initial stage of development and is engaged in a review of market development concept and seeking sources of investment. Determined that the investment in the form of venture capital good effect on the economic situation in general, as created new forms of risky management, new methods of investment management, which definitely gives impetus to the development of the technology and have a positive impact on other areas of the economy, because today the latest technology and developments implemented everywhere. Results of the study can be used to further scientific research towards finding ways of adapting venture capital investment in the Ukrainian economy, working out research base for an effective infrastructure investment.