THE ROLE OF PUBLIC AND PRIVATE VENTURE INVESTMENTS IN THE DEVELOPMENT OF STARTUP ECOSYSTEMS IN EUROPE
Abstract
The article is devoted to a comprehensive study of the role of public and private venture capital investments in the development of startup ecosystems in Europe, including Ukraine as a full-fledged European state. The crucial importance of venture capital for stimulating innovation is substantiated, and it is proved that venture capital is a powerful catalyst for innovation, an engine of entrepreneurial activity and an important factor in sustainable economic growth. The main trends characterizing the European venture capital market are analyzed. The dynamics of the total amount of invested funds, as well as the ratio between the contributions of public funds (government programs and initiatives) and private investors (venture capital funds, business angels) are considered. The specifics of the startup ecosystem functioning as a complex network of interconnected elements that jointly provide support to new companies at different stages of their life cycle are revealed. The challenges and prospects for the development of venture capital investment in Ukraine are analyzed. The impact of these factors on the country's investment attractiveness and the potential of the Ukrainian startup ecosystem is assessed, given the difficult geopolitical situation caused by military aggression. At the same time, the sustainability and innovative potential of Ukrainian technology companies is emphasized. A number of practical recommendations aimed at overcoming the existing problems and creating favorable conditions for the intensification of venture capital investment in Ukraine are formulated. The proposed measures include improving the investment climate by reforming the judicial system and fighting corruption, developing financial and digital infrastructure, effective protection of intellectual property rights, and developing and implementing effective programs of state support for innovative startups. Particular attention is paid to the need to support startups working in the field of defense technologies and on technologies for the future reconstruction of Ukraine. The author proves the key role of venture capital investments in stimulating innovative development and emphasizes the importance of coordinated efforts of the state, the private sector and international partners to build a strong and competitive startup ecosystem in Ukraine as an integral part of the European innovation space.
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