The role and analysis of venture financing in the digitalization of the economy

Abstract

The increase in business digitalization is inextricably linked with the emergence of new innovative companies. Technological projects successfully implemented on the market are the basis for the development of high technology and one of the most effective elements of accelerating innovation processes. The mechanism of influence of different types of diversification indexes on the level of capitalization of the enterprise depending on the economic cycle was analyzed. This analysis revealed that during the COVID-19 pandemic, the most attractive sectors of the economy for venture capital were information technology, telemedicine and online education. This study focuses on the importance of investment in technological projects, which are the main factor in the competitiveness of enterprises, industries and national economies as a whole. It provides examples of successful venture projects in Ukraine and analyzes the effectiveness of the development of their technological areas by various companies in the nontechnological sector. The types of technology investments were considered in terms of the classification of venture investment funds, the differences in the strategies of venture funds and traditional private equity funds in technological companies, as well as the development of corporate technology projects or startups. The study also considered the processes of diversification of enterprises in the face of the ever-increasing influence of the technology sector in other industries. The study discusses the features of venture financing of innovative projects in modern economic conditions. By examining different types of technology investment strategies, the introduction of innovations into existing business processes was analyzed. An analysis of the structure of the distribution of investment flows in the most popular areas of venture capital distribution was carried out. The dependence of the level of diversification of the company and its activities regarding the distribution of funds for the development of high-tech areas was studied. Recommendations regarding the development of the Ukrainian market for technological investments are provided, and the method of research of the investment directions of diversified enterprises in the introduction of innovations is offered.