EVOLUTION OF VENTURE CAPITAL CONCEPTS: HISTORICAL DEVELOPMENT AND PERSPECTIVE

Abstract

The aim of the article is to study the evolution of venture capital and the features of the historical development of venture capital. The task is to explore the gradual expansion of competencies related to the concept of "venture capital". In addition, the article clarifies unresolved issues as possible areas for further research. Among the tasks of this study is to explore the need to take into account an integrated approach of the analysis of venture capital in the context of its historical development. In accordance with the goal of the study, the following research methods were used, such as analysis and synthesis (in the consideration of basic concepts), as well as induction and deduction and the dialectical method. The article examines existing approaches to the definition of venture capital and other definitions related to it. Thus the authors cover: venture business, venture capital, venture finance, venture capitalists, innovation, entrepreneurship, innovative entrepreneurship. Emphasis is given to the historical development of venture capital and the peculiarities of this development for the United States and Europe. The definitions of venture capital, which differ in time and content, are compared and the gradual expansion of the content in historical terms and in accordance with the need for detail is noted. The process of development of venture business in interrelation and interdependence on the level of development of business, innovation of the countries, and also development of the financial market and its institutional structure is considered. Venture capital shows clearly that it is the most risky form of financing; Venture capital investment takes place in the early stages of the enterprise life cycle and concerns mainly the innovation sphere, called innovative entrepreneurship. In addition, it should be noted that the profit of investors is long-awaited and associated with mergers and acquisitions or initial public offering, although it is measured mainly by greater participation in capital (larger stake). The conclusions concern the multifaceted nature of the concept of "venture capital". Attention is drawn to the need to consider it in connection with other issues, such as: legal basis and taxation, management features, the impact of cross-border conditions, changes in business models, educational institutions, etc. This is left of further and deeper research.