Problems and prospects of venture capital investment in Ukraine

The article is devoted to the analysis of the current state of venture investment in Ukraine, the identification of key problems and the outline of the prospects for its further development. The essence of venture investment is studied, and the development and effectiveness of venture entrepreneurship in international practice are analyzed. The study of foreign experience makes it possible to assess the key advantages and disadvantages of this financing model, as well as to outline ways of its adaptation to the economic realities of Ukraine in order to stimulate innovative development and attract investment. Venture financing is an important component of the modernization of the national economy, in particular in the context of global competition and technological change. Its effective implementation can create new opportunities for the development of small and medium-sized businesses, which is the basis of economic growth. The formation of a national venture ecosystem requires a comprehensive approach and active participation of all stakeholders. The issue of venture capital investment becomes especially relevant in times of martial law. Economic instability, reduction of traditional sources of financing and the need for rapid reconstruction of the country make innovative business one of the key factors of economic stability. Venture capital can contribute to the development of critical industries, such as defense technologies, cybersecurity, energy independence and digitalization. Stimulating venture capital in Ukraine during wartime is not only an opportunity for economic growth, but also a strategic necessity to ensure technological breakthrough, infrastructure reconstruction and strengthening the country’s economic security. The article pays special attention to the role of state policy in creating a favorable investment climate. Among the main problems, the insufficient development of venture capital, high risks for investors, as well as the inadequacy of the legislative framework are highlighted. The article considers possible ways to overcome these obstacles, in particular through the development of innovation infrastructure, stimulation of the startup ecosystem and the creation of state mechanisms to support venture financing. The prospects for the development of venture investment in Ukraine are associated with integration into the global financial market, digitalization of the economy and increasing the country’s attractiveness for international investors. The conclusion is made about the need for active cooperation between the state and business.