Purpose. Since the venture business is a catalyst for structural adjustment and technological renewal of the country’s economic complex, small firms with the support of venture capital effectively create and sell innovations that become the basis of new economy sectors. Effective organization of venture activity requires analysis of the main trends in developing organizational forms of venture business and the creation of venture funds. This article aims to form a coherent system of indicators for evaluating the effectiveness of venture projects to manage the energy of venture business and the characteristics of these indicators. Scientists and their features present the analysis of available indicators or systems of indicators for evaluating the effectiveness of venture business.
Design/methodology/approach. This study used both general scientific methods, empirical and theoretical, in particular, the process of analysis (in the study of indicators for evaluating the effectiveness of venture business), synthesis (in the formation of a coherent system of indicatorsfor assessing the effectiveness of venture business), generalization and explanation, classification, and also system (for coordination of the system of hands). Also, unique research methods were used, in particular, formal-logical and comparative forms ofscientific knowledge.
Findings. The article’s indicators of evaluating the effectiveness of venture investments in innovative projects have been investigated and analyzed. A critical analysis of methodological approaches to assessing the effectiveness of venture capital has been done. It is proposed to evaluate the effectiveness of venture projects on such indicators as internal rate of return, modified internal rate of return, net present value, payback period, discounted payback period, the profitability of sales, average rate of return, discounted profitability index, and contribution index-adequate assessment of the balance of indicators for assessing the effectiveness of venture investments.
Practical implications. The article proposes to evaluate the effectiveness of venture projects on such indicators as internal rate of return, modified internal rate of return, net present value, payback period, discounted payback period, the profitability of sales, average rate of return, discounted profit index and profit income which will contribute to obtaining a comprehensive and adequate assessment of the balance of indicators for assessing the effectiveness of venture investments. The formation of a coherent system of indicators for evaluating the effectiveness of venture projects will manage venture business efficiency. The intensification of venture activity in Ukraine requires developing an integrated approach, covering institutional development, legislation, and macroeconomic regulation. The story of venture business will contribute to achieving the most critical state goals: the improvement of the innovation sphere and increasing the competitiveness of the domestic economy by entering world markets. The practical application of methods for assessing investment effectiveness is carried out using indicators NPV, IRR, PP, and others. The formation of a portfolio of innovative projects based on linear programming’s classical problem can not be applied in full. That is why today, it is essential to solving issues related to the development and improvement of methods and models of venture risk analysis, assessing the attractiveness of innovative projects, and forming a creative portfolio by a venture company.
The participation of venture investors in the capital ofstartups is attractive for several reasons: the presence of venture funds in shareholders tells partners and potential employees that the audit of the company means that the business is transparent and the funds risked their money in terms of growth prospects; venture capitalists help in management. After all, they have experience supporting and developing similar startups; you can use the fund’s companies’ expertise, for example, in organizing sales or preparing for an IPO. Finally, investor connections open up partnerships with other companies, attracting experienced professionals, such as marketing, commercial, financial, executive director. But experts go only to projects with a clear business structure, and venture funds guarantee its presence. Because venture investors, as mentioned above, have a foundational approach to the companies they finance and are initially focused on leaving the company by selling their stake to a strategic investor, company management, or the stock market, the key to success for them, in our view, is a growth company value.
1. Fedorovych P. P., Khariv P. S. (2008). Modeliuvannia rozvytku venchurnoho biznesu [Modeling of venture business development]: [monohrafiia]. Ternopil, 212 р.
2. Lapitskaya L. M. (2019). Venture financing: textbook allowance. Minsk: BSU (in Russian).
3. Usatenko O. V. (2017). Ekonomichnyi analiz dokhodnosti venchurnoi diialnosti venchurnykh fondiv [Economic analysis of the profitability of venture capital ventures] Problemy teorii ta metodolohii bukhhalterskoho obliku, kontroliu i analizu [Problems of theory and methodology of accounting, control and analysis], 2, pp. 87-93. Retrieved from: http://nbuv.gov.ua/UJRN/ptmbo_2017_2_19 (accessed 25 March 2021).
4. Vladymyrova I. L., Puhachova V. S. (2013). Osnovnыe pryntsypы kompleksnoi otsenky эffektyvnosty venchurnoho ynvestyrovanyia v ynnovatsyonnыe proektы v stroytelstve [Basic principles of comprehensive assessment of the effectiveness of venture investment in innovative projects in construction]. Эffektyvnost venchurnoho ynvestyrovanyia v stroytelstve. Vestnyk RЭU, vol. 2. pp. 32-38.
5. Tsarev V. V. (2004). Otsenka ekonomicheskoy effektivnosti investitsiy [Assessment of economic efficiency of investments]. SPb: Akademiya finansov, 422 h.
6. Khrushch N. A. (2008). Stratehiia kompanii: mekhanizm formuvannia y adaptatsii v suchasnomu investytsiinomu seredovyshchi [Company strategy: the mechanism of formation and adaptation in the modern investment environment]. Finansy Ukrainy [Finance of Ukraine], No. 8, рр. 45-52.
7. Mykula H. V. (2013). Metody otsiniuvannia efektyvnosti investytsii v innovatsiini proekty: nedoliky ta perevahy [Methods for evaluating the effectiveness of investment in innovative projects: disadvantages and advantages]. Stratehichni oriientyry [Strategic guidelines]. Retrieved from: http://libfor.com/index.php?newsid=1781 (accessed 29 March 2021).
8. Pro investytsii. Vse pro investytsiinu diialnist, kredyty ta finansy [About investments. Everything about investment activities, loans and finances]. Retrieved from: http://xn----dtbjmwegiok9b3mho.xn--j1amh (accessed 30 March 2021).
9. Encyclopedia of Economics. Vnutrishnia norma prybutku [Internal rate of return]. Retrieved from: https://uk.wikipedia.org/wiki (accessed 29 March 2021).
10. Encyclopedia of Economics. Modyfikovana norma prybutkovosti [Modified rate of return]. Retrieved from: https://uk.wikipedia.org/wiki (accessed 29 March 2021).
11. Shvets N. P., Pylypiak O. V. (2010). Osoblyvosti ta problemy zastosuvannia statystyko-ymovirnisnoho metodu otsinky ryzykiv v sferi realnoho investuvannia [Features and problems of application of statisticalprobabilistic method of risk assessment in the field of real investment]. Universytetski naukovi zapysky [University scientific notes]. No. 1, pp. 235-245. Retrieved from: http://nbuv.gov.ua/UJRN/Unzap_2010_1_44 (accessed 30 March 2021).
12. Mamotenko D. Yu. (2008). Otsinka efektyvnosti investytsiinykh proektiv [Evaluation of the effectiveness of investment projects]. Visnyk NU LP [Bulletin of NULP], No. 628, pp. 209-215.
13. Luchko M. R. (2007). Teoretychni aspekty ekonomichnoho analizu [Theoretical aspects of economic analysis]. Ekonomichnyi analiz [Economic analysis], T. 27, No. 4, pp. 11-19.
14. Lyshenko M. O. (2019). Analitychnyi instrumentarii vyznachennia osnovnykh pokaznykiv rentabelnosti. Ekonomichna analityka: suchasni tendentsii ta prohnostychni mozhlyvosti [Analytical tools for determining the main indicators of profitability. Economic analysis: current trends and forecasting capabilities]. Zbirnyk materialiv MNPK [Collection of materials of MNPK]. Kyiv: KNEU, pp. 181-183.
15. Dyvnych O. D. (2014). Formalni metody otsinky efektyvnosti proektnykh rishen [Formal methods of evaluating the effectiveness of design decisions]. Naukovyi visnyk Khersonskoho derzhavnoho universytetu [Scientific Bulletin of Kherson State University], Vyp. 6. 2, pp. 155-158.
16. Vovk O. M., Kovalchuk A. M., Komisarenko Ya. I., Dzhulai A. V. (2020). Prybutok ta rentabelnist yak determinanty rozvytku pidpryiemstva [Profit and profitability as determinants of enterprise development]. Suchasna ekonomika [Modern Economics], No. 21, pp. 37-44.
17. Pylypiak O. V., Bakai V. I. (2010). Osoblyvosti ta problemy otsinky efektyvnosti innovatsiinykh proektiv za kryteriiamy DPP ta NPV [Features and problems of evaluating the effectiveness of innovative projects according to DPP and NPV criteria]. Aktualni problemy ekonomiky [Current economic problems], No. 11 (209), pp. 78-89.
18. Gusev A. V. (2018). Osobennosti rascheta investitsionnoy effektivnosti proektov po metodu NPV [Features of calculation of investment efficiency of projects by the NPV method]. Marketing i logistika [Marketing and logistics], No. 13, pp. 34-39.
19. Koval'ov P. (2017). Uspeshnyy investitsionnyy proekt [Successful investment project]. Riski, problemy i resheniya [Risks, problems and solutions]. M.: Al'pina Pablisher, 432 p.
20. Sekeryn V. D., Horokhova A. E. (2013). Otsenka investitsiy [Investment valuation]. Moskva. 152 р.
21. Usatenko O. V., Lehenchuk S. F. (2014). Napriamy ta problemy bukhhalterskoho obliku ta analitychne zabezpechennia venchurnoi diialnosti [Directions and problems of accounting and analytical support for venture activity]. Ekonomichni litopysy XXI. [Economic Annals XXI], No. 11-12, pp. 131-134.