VENTURE INVESTMENT RISKS AND MANAGEMENT DECISIONS FOR THE DEVELOPMENT OF A COMPETITIVE MARKET IN UKRAINE
Abstract
Venture investment serves as a key mechanism for financing innovative projects, promoting technological development, digitalization, and economic growth. The relevance of the study is determined by the growing role of venture capital in modern economies and the specifics of the Ukrainian market, which operates under conditions of armed conflict, high macroeconomic instability, insufficient institutional support, and limited access to domestic financial resources. The purpose of the article is to provide a comprehensive analysis of the main categories of venture investment risks in both the global and national contexts, to identify their interconnections, and to develop recommendations for adapting to these risks to ensure the development of a mature and competitive venture market in Ukraine. To achieve this goal, the study applied methods of systemic, structural, and comparative analysis, synthesis and generalization, as well as a cause-and-effect approach to assess the impact of external and internal factors on the venture market and the interaction of different risk groups. The results of the study confirmed that the main categories of risks are external, internal, human, and capital, which interact with each other, creating synergistic effects. Considering the Ukrainian military realities, the category of external risks has been supplemented by two groups: geopolitical/war and institutional/legal risks. The authors substantiated that in the international context, venture investment risks may act as a catalyst for innovation, whereas in Ukraine their combination restrains market development due to weak institutional support, limited resources, insufficient domestic investments, capital outflow, and geopolitical threats. Therefore, in the domestic economic environment, effective risk management and the development of adaptive mechanisms, including improving the legislative framework, creating national venture funds, developing market infrastructure, supporting human capital, and enhancing managerial culture, are critically important for forming a stable, mature, and competitive venture market in Ukraine.
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