THE IMPACT OF VENTURE INVESTMENT ON THE ECONOMIC DEVELOPMENT OF THE STATE

Abstract

The article is devoted to studying the impact of venture capital investment on the economic development of the state. The specifics of venture capital as an instrument for financing innovative startups, its primary advantages, and its role in stimulating scientific and technical developments and technological transformation of the economy are considered. Venture capital investment primarily targets startups and early-stage companies with high growth potential and is characterized by elevated risk due to investment in innovative projects lacking established business models or proven track records. Based on the analysis of international experience, it was established that venture capital contributes to the formation of innovation clusters, the increase in the number of technology companies, job creation, and the enhancement of global competitiveness. Empirical studies confirm the macroeconomic impact of venture capital: increased venture funding contributes to higher patent activity, business formation, employment growth, and regional income expansion. In the context of Ukraine, however, assessing the impact of venture capital remains methodologically challenging due to the absence of comprehensive official statistics. Data on venture deals are fragmented and primarily collected by analytical companies and профиль organizations. Existing evidence indicates a more than fourfold increase in the number of IT companies between 2013 and 2023, demonstrating the resilience of the sector despite economic and political challenges. This confirms the sensitivity of venture capital flows to external risks and uncertainty. The findings emphasize the long-term and multiplier effects of venture capital on economic development. Directions for further research are identified and ways of improving the methodological and information base for analyzing the economic effects of venture capital investments in Ukraine are proposed. Strengthening institutional cooperation and extending the observation period would enable more robust analysis and support the formulation of effective public policies aimed at fostering the development of the national venture ecosystem.