AUTONOMOUS NON-PROFIT ORGANIZATION
HIGHER PROFESSIONAL EDUCATION
CENTROSOYUZ OF THE RUSSIAN FEDERATION
"RUSSIAN UNIVERSITY OF COOPERATION"

DEPARTMENT OF FINANCE AND STATISTICS
Course work
By discipline: "Investments"
On the topic: "Venture financing"

Completed by a student:
Petrova M.V.
FK43 groups
Scientific adviser:

Moscow2011

Content:
Introduction………………………………………………………………………………..2
1. Venture financing;……………………………………………………..4
1.1 Definition of venture financing;………………………………………………………........................ ..6
1.2 Features of venture financing……………………………………………………………………..…..8
1.3 The essence of venture financing………………………………………………………………….……….13
2. Venture financing in Russia…………………………………………………………………………….…….14
2.1. The history of the development of venture financing in Russia…………………………………………………………………………….…….16
3. Mechanisms of venture (risk) financing: world experience and development prospects in Russia…………………………………………………………………………….……..21
4. Trends and opportunities for the development of venture financing in Russia……………………………………………………………………………………..25
Conclusion………………………………………………………………………………28
Appendix…………………………………………………………………………………30
References……………………………………………………………………32

Introduction
Raising equity capital in small and medium-sized private companies as a phenomenon and process was not known in post-perestroika Russia until recently. The free capital market has not yet developed in our country, so the majority of small and medium-sized entrepreneurs in Russia believe that there is nothing special to attract yet. At first, great hopes were placed on foreign investment, but over time, the Russian entrepreneur realizes the futility and loss of this option.
The active penetration of foreign capital into the Russian market, accompanied by the outflow of national capital outside the country, gives rise to many problems of an economic, social and psychological nature. Meanwhile, the integration of the Russian economy into the world economic space is an irreversible process. The principles and ethics of civilized business are penetrating deeper and deeper into the consciousness of a Russian entrepreneur and his daily business practice.
The state policy in relation to small and medium-sized businesses (in fact, as well as business in general) is also still far from perfect. The confrontation between the state and society most painfully responds to those who decide to start their own business, often from scratch, from scratch. These people have to live and work in a hostile environment. The feeling of insecurity gives rise to disbelief and apathy in some, while in others, on the contrary, it brings up character and fighting qualities - the key to the success of any undertaking. The underdevelopment of the business infrastructure in Russia, combined with the information impenetrability and remnants of the country's long-term isolation from the rest of the world, in the minds of many entrepreneurs, makes it difficult to see that a new financial industry is already operating in Russia today - venture capital.
Venture or risk capital is an obscure phenomenon for the vast majority of Russians. It is confused with bank lending or charity. There is practically no information about the nature and activities of venture funds and companies, apart from a few confused notes in Moscow and St. Petersburg publications.
The name "venture" comes from the English "venture" - a risky venture or undertaking. "In the era of perestroika, joint ventures were also called "joint ventures", which, perhaps, would be more correctly translated as "joint venture." The term "risk" itself implies that there is an element of adventurism in the relationship between the capitalist-investor and the entrepreneur who claims to receive money from him.
At present, civilized economic relations are being formed in the Russian economy, the stock market is developing, the banking system is developing, large private enterprises are emerging and developing. The development of civilized market conditions based on private entrepreneurship leads to the formation of alternative sources of funds - venture investments - investments in high-risk projects, or venture innovation projects.
Venture entrepreneurship, facilitating the creation of new and modernization of existing industries based on the use of scientific and technological achievements, is a tool for developing and supporting the real sector of the economy, a means of accelerating the development of private innovative entrepreneurship, and a tool for positively influencing the national economy. Venture capital enterprises are the first enterprises (explerents) operating in the market of radical innovations. This applies to all sectors - biotechnology, telecommunications, communications, computer technology, industry, etc.
The purpose of this course work is to consider what venture financing is, features, essence, history of venture financing in Russia. Mechanisms, as well as trends and the possibility of its development in Russia.

1.Venture financing.
VENTURE FINANCING- allocation of funds from venture (risk) capital to small research or development firms for the development, refinement and implementation of innovations that are risky, but promising. As a rule, the owners of money capital, when making loans to inventors and entrepreneurs, cannot claim collateral for a loan or demand from them guarantees that they will enter the market with innovations on time, make a profit and repay debts with interest.
One of the main sources of financing for innovative projects is venture capital.
Venture (risk) capital is a form of capital investment in investment objects with high level risk based on quick receipt high rate of income.
Venture capital is formed to finance venture companies, which are business cooperation between the owners of the company and the owners of venture capital to implement projects with a high degree of risk in order to obtain significant (above the market average) income.
Venture capital financing consists of financing investments in new areas of activity, therefore it is accompanied by high risk in exchange for generating significant income.
A venture enterprise is an enterprise whose activities are related to the development of new types of products, services, technologies that are unknown to the consumer, but have a great market potential, which is associated with a high degree of risk of their promotion on the market. However, the innovation of their activities provides a high income.
Venture financing is based on a preliminary assessment of the investment project, the activities and financial condition of the company implementing this innovative project.
Venture financing is carried out in the form of corporatization.
Venture funds are created to finance ventures. Venture fund investment resources are intended for venture capital companies that have a great chance of growing into large profitable enterprises. These odds come with a high risk.
Therefore, a venture fund is characterized by the distribution of risk between project initiators and investors.
One of the main ways to protect against investment risks is insurance. This applies to venture capital as well. The mechanisms for organizing insurance and guarantees of attracted investment resources for venture projects include the creation of a system of state risk insurance for venture investors.
The main principles of the venture fund are:
1) creation of a venture capital fund in the form of a partnership, in which the organizer is fully responsible for the use of the funds of the fund. For this, a business plan is being developed;
2) placement of venture fund funds for various projects with a risk degree of not more than 25% and with a return on investment period not exceeding 3-5 years;
3) "exit" of venture capital from a venture enterprise by turning it into an open joint-stock company with the placement of shares of a venture enterprise on stock exchange or their sale to a large corporation.

1.1 Definition of venture financing.
There are many definitions of what venture capital is, but they all boil down to its functional task: to promote the growth of a particular business by providing a certain amount of money in exchange for a share in the authorized capital or a certain block of shares.

A venture capitalist who runs a fund or company does not invest his own money in the companies in which he acquires shares.

venture capitalist - it is an intermediary between syndicated (collective) investors and an entrepreneur.

This is one of the most fundamental features of this type of investment. On the one hand, a venture capitalist independently decides on the choice of a particular object for investment, participates in the work of the board of directors and in every possible way contributes to the growth and expansion of the company's business.
On the other hand, the final decision on the production of investments is made by the investment committee, which represents the interests of investors. Ultimately, the profits received by a venture investor belong only to investors, and not to him personally. He has the right to count only on a part of this profit if he has a part of the business.

These principles were laid down at the initial stage of venture capital formation by the founding fathers of this business - Tom Perkins, Eugene Kleiner, Frank Caufield, Brook Byers and others.

In the 1950s and 1960s, they developed new fundamental concepts for organizing financing: creating partnerships in the form of venture funds, collecting money from partners with limited liability and establishing rules for protecting their interests, using the status of a general partner. This organizational design of the investment process was innovative for America in the middle of the 20th century and created a very significant competitive advantage.

Tom Perkins himself described this process as follows: “Looking back, I think that what we invented then was right. First of all, we always remembered and were aware that our partners with limited liability were the source of our capital, so we initially developed a set of rules that protected their interests. For example, until today, no general partner can have a personal investment in a company that the partners may be interested in, even if they abandon it over time. This principle ensures that there is no conflict between our personal interests and our interests as partners. Even if any of us, as a member of the Board of Directors at a reduced price, has the opportunity to purchase some of the shares, we are obliged to transfer them to our partners so that they can also benefit from it. In addition, unlike other venture capital funds, we have never reinvested profits. All profits were immediately distributed to our limited partners and thus all of our funds ceased to exist. Our investors liked it. Another principle was that the newly created funds did not have the right to invest in those companies where our earlier funds invested ... ".

These principles remain largely unchanged to this day. The organizational structure of a typical venture capital institution is as follows.
It can either be formed as an independent company or exist as an unregistered formation as a limited partnership (something like a "general" or "limited" partnership, to use Russian legal terminology). In some countries, the term "fund" is understood to mean an association of partners rather than a company as such. The directors and management staff of a fund may be employed by the fund itself, or by a separate "management company" or fund manager who provides services to the fund. The management company, as a rule, is entitled to an annual compensation (management charge), usually up to 2.5% of the initial obligations of investors (investor's initial commitments).

In addition, the management company or individuals, employees of the management staff, as well as the general partner. They can count on the so-called "carried interest" - a percentage of the fund's profit, usually reaching 20%. More often than not, this interest is not paid until investors have been fully reimbursed for their investment in the fund, plus a predetermined return on their investment.
In the case of a limited partnership, the founders of the fund and the investors are partners with limited liability. The general partner in this case is responsible for the management of the venture fund or exercises control over the work of the manager. Limited partnerships are tax free. This means that it is not subject to taxation, and its participants must pay all the same taxes that they would pay if their income or profits came directly from those companies in which they independently invested their funds.

1.2. Features of venture financing

Venture financing is associated with mutual investments in shares, that is, with risk and stock trading.

The venture capitalist does not invest directly in the company, but in its share capital, the other part of which is the intellectual property of the founders of the new company.

Investments are made in companies whose shares are not yet listed on the stock exchange.

Venture capital is directed to small high-tech companies focused on the development and production of new science-intensive products.

Venture capital is provided to new high-tech companies for medium and long term and cannot be voluntarily withdrawn by a venture capitalist until the end of the company's life cycle.

Venture funding is provided primarily to companies with growth potential, rather than to companies that are already generating high profits.

Venture capital is directed to support non-traditional (new, and sometimes completely original) companies, which, on the one hand, increases the risk, and, on the other hand, increases the likelihood of obtaining ultra-high profits.

Investing venture capital in exclusive small high-tech companies is dictated by the desire not only to get higher income compared to investments in other projects, but also the desire to create new markets, occupying a dominant position in them.

Venture investments are not provided forever, but only for a certain time.

Venture financing is a kind of loan to new companies, long-term loan without receiving guarantees, but at a higher percentage than in banks.

A venture capitalist, when investing in a new small company, must decide in advance how he is going to exercise his right to profit. In other words, it must determine how it will exit the investment at the end of the life cycle of the financed company (in 5-7 years).

As the company develops, its assets and liquidity increase both due to the emergence of demand for unquoted shares, and in connection with the emerging competition between those wishing to acquire a new profitable business.

The success of the development of an invested small company is determined by the growth in the price of its shares, the reality of a profitable sale of the company or its part, as well as the possibility of registering the company on the stock exchange with subsequent profitable purchase and sale of shares on the stock market.

The mutual interest of the founders of the company and investors in the successful and dynamic development of a new business is associated not only with the likelihood of obtaining high incomes, but also with the opportunity to become a participant in the creation of a new progressive technology that stimulates the scientific and technological progress of the country.

The role of an investor in the successful development of a new company is not limited to the timely provision of venture capital, but includes simultaneously investing their business experience and business connections that contribute to the expansion of the company's activities, the emergence of new contacts, partners and markets.

However, in addition to focusing on small successfully developing enterprises with the prospect of rapid growth, venture capital is also characterized by a number of additional features.
Here is some of them.
Since for the profitable realization of investments invested in venture enterprises, it is necessary for a new high-tech company to enter the stock market to sell shares, the owner of the funds invested in the company is not interested in dividends, but in the growth of the capital itself. Usually venture capitalists, investing in venture enterprises, want to increase their capital by at least 5-10 times in 7 years. At the same time, since a venture capital enterprise can enter the stock market for the first time in the best case 3-5 years after the investment, the venture capitalist does not expect to receive a profit earlier than this period. And throughout this period, the venture capital invested in the company is illiquid, and the real amount of profit becomes known only after the company enters the stock market, when venture capital investors receive income by selling their block of shares to those who wish for an amount that significantly exceeds the amount of funds originally invested in the company.
And this "overshoot" can be quite impressive. For example, in Russia, thanks to more than a modest investment (only a few thousand dollars), a small research team created the drug Timogen, which turned out to be a powerful immune stimulant, in which several countries showed interest at once. In the end, only the license for its production was sold to the United States for several million dollars. Such a profitability - several thousand percent - is not able to give any industrial project, and even the financial and banking machinations that flourished in Russia until a certain time. Such incredibly high profitability can only be provided by venture capital business.
Very characteristic feature venture financing is also the fact that the investor almost never seeks to acquire a controlling stake in the company, which is fundamentally different from a "strategic investor" or "partner". The investor takes on mainly financial risk, and transfers such types of risks as technical, market, managerial, price, etc. to the management, which has the controlling stake in the company.
Based on the nature of venture capitalism, almost any investment in any stage of the development of new companies is a high-risk financial operation, the degree of risk of which, combined with the courage and ability to wait, can only be compensated by the high profitability of the invested high-tech company in the later stages of its development.
Since venture investments are high-risk, and in case of unsuccessful development of the company, the investor loses all the invested funds, venture capitalists, in order to reduce risks as much as possible, tend to participate directly in the management of the enterprise, entering the Board of Directors. The same explains the fact that venture capitalists are often directly involved in the selection of objects for investment, as well as the fact that they always simultaneously carry out several venture operations, that is, they work with new ones, with existing ones, and with companies prepared for sale. .
In order to minimize risk, venture capitalists tend to spread their funds among several projects, and at the same time, several investors can support one project. To do this, venture financing uses a phased allocation of resources in the form of small portions (tranches) or, as they say among venture businessmen, through a "drop" when each subsequent stage of enterprise development is financed depending on the success of the previous one.
And finally, venture capital owners, by directing investments where banks (by charter or out of caution) do not dare to invest, not only receive ordinary or preferred shares, but also stipulate a condition (in the case of the purchase of preferred shares), according to which the investor has the right at a critical moment to exchange them for simple ones, in order to acquire control over the "limping" company in this way and try to save it from bankruptcy by changing the development strategy. And this is entirely justified, since venture capitalists take great risks by turning their funds into shares of other firms, and counting on the high profits characteristic of the most successful firms. high technology whose share price increases several times over 5-7 years.
Since the decisive role in the success of an enterprise often belongs not so much to the idea underlying the product and technology as to the quality of enterprise management, the venture capitalist delves less into the intricacies of a scientific idea, preferring to conduct a detailed assessment of the potential capitalization of this idea and the organizational skills of the head and management of the company .
A venture capitalist cooperates with an invested company until it not only stands on its own feet, but also becomes attractive to potential buyers. From this moment, yesterday's owner of the invested funds, and now who has become the owner of a package of shares in demand, considers his functions exhausted and exits the investment, releasing capital "frozen" for several years and receiving a long-awaited profit.
To do this, the venture capitalist has two fundamentally possible options:
- either the sale of shares on the stock market, which is preceded by the initial public offering of shares (initial public offering-IPO);
- either a direct sale of a company or part of it to a buyer who is ready to purchase it at a price that provides the investor with the planned amount of profit. After that, the venture capitalist permanently or temporarily parted with the company with which he "lived" together for 5-7 years. And, as practice shows, he did not live in vain.
And despite the fact that, by its nature, venture financing is necessarily associated with risk, it is the excessive risk of financing an unknown company that is the most significant limiting factor for a potential investor who is considering where it would be more profitable to invest free money: buy shares in an oil company, invest in a new company , developing the technology of tomorrow, which is obviously risky, or putting money in the bank at a low, but guaranteed interest rate.
However, in principle, there can be no completely risk-free financial transactions - there are many examples in life when oil companies also go bankrupt, and the most seemingly reliable banks turn out to be bankrupt (in this respect, the banking crashes of 1998 are still too fresh in Russian memory), and that the risk, which seemed to many to be too great and completely obvious, is often clearly exaggerated in reality. Moreover, it turns out that those who were not afraid to take risks, turned out to be big winners.
Another very characteristic feature of venture financing is that venture capital is always sensitive to fashion and relentlessly follows it. Investments are more readily and most often directed to those industries that are associated with the possibility of a quick and profitable sale of science-intensive products, for which there is already or is just being formed a rush demand that brings the greatest profit.
For example, in the 1980s, the CD craze for "sidiroms" began, and immediately venture capitalists began to invest heavily in this industry, willingly and on favorable terms for companies. Then this fashion began to fade, and the influx of investment dried up. The same picture was observed when the infatuation appeared. mobile phones. The same will happen in the near future with the former knowledge-intensive services that provided access to the Internet. Undoubtedly, after a short time, the software for personal computers will cease to bring the former profits, and as a result, venture investments in this industry will be significantly reduced, because there are no and cannot be eternally attractive sectors of the real sector of the economy for venture financing. Eternal is only the desire of venture capitalists to multiply their assets.
Therefore, the conclusion is quite legitimate: venture financing will always be attractive for those who are ready for a high degree of risk, the initial illiquidity of the company's assets and the long-term "freezing" of a certain part of their capital for the sake of translating a scientific and technical idea into reality, meeting the new needs of mankind and the subsequent non-guaranteed receipt super profits.
Thus, venture financing is a kind of investment in new high-tech companies to ensure their formation, growth and development in order to make a profit if the project is successfully implemented. That is, it is a high-risk investment of private capital in high-tech small companies that are capable of producing science-intensive products or services that are in high demand in the future.
However, it is still not entirely correct to equate venture and high-risk financing, since in general any financing, including the elementary provision of a loan, and even the decision to lend money to a friend, is also a certain risk.

1.3. Essence of venture financing.
To date, very few domestic firms and entrepreneurs practice raising venture capital. According to sociological surveys, only a small part of entrepreneurs has an idea about venture investment. An even smaller part has objective and reliable information about the mechanisms of venture capital investment. Therefore, the popularization of venture capital investment, training in venture financing methods and attraction of venture capital are needed.
Venture capital is an economic instrument used to finance the commissioning of a company, its development, takeover or buyout by an investor during a property restructuring. The investor provides the firm with the required funds by investing them in the authorized capital and (or) issuing a tied loan. For this, he receives an agreed share (not necessarily in the form of a controlling stake) in the authorized capital of the company, which he retains until he sells it and receives the profit due to him.
The essence of venture capital is manifested through its functions, which include:
- Scientific and production function. It is aimed at promoting a technological breakthrough, at the development of innovative and business activity, which ultimately contributes to the economic innovative growth of economic systems.
- The function of commercialization of scientific, technical and innovative activities.
etc.................

One of the forms of financing investment projects through the creation of a new enterprise designed specifically for the implementation investment project, is venture funding. The concept of "venture capital" venture- risk) means risk capital invested primarily in new areas of activity associated with high risk. Venture financing allows attracting funds for the implementation of the initial stages of the implementation of investment projects of an innovative nature (development and development of new types of products and technological processes), characterized by increased risks, but at the same time, the possibility of a significant increase in the value of enterprises created in order to implement these projects. In this respect, venture capital investment differs from financing (by buying additional issue shares, shares, etc.) of existing enterprises, the shares of which can be acquired for the purpose of further resale.

Venture financing involves attracting funds to the authorized capital of an enterprise from investors who initially intend to sell their stake in the enterprise after its value increases during the implementation of the investment project. Income associated with the further functioning of the established enterprise will be received by those persons who acquire its share from the venture investor.

Venture capital investors (individuals and specialized investment companies) invest their funds with the expectation of receiving significant profits. Previously, with the help of experts, they analyze in detail both the investment project and the activities of the company offering it, the financial condition, credit history, quality of management, specifics of intellectual property. Special attention is given to the degree of innovativeness of the project, which largely determines the potential for rapid growth of the company.

Venture investments are made in the form of acquiring a part of the shares of venture enterprises that are not yet listed on the stock exchanges, as well as providing a loan or in other forms. There are venture financing mechanisms that combine different types of capital: equity, loan, entrepreneurial. However, venture capital is mostly in the form of equity capital.

Venture capital companies usually include small enterprises whose activities are associated with a high degree of risk of promoting their products on the market. These are enterprises that develop new types of products or services that are not yet known to the consumer, but have great market potential. In its development, a venture enterprise goes through a number of stages, each of which is characterized by different opportunities and sources of funding.

At the first stage of development of a venture enterprise, when a product prototype is created, insignificant financial resources are required; however, there is no demand for this product. As a rule, the source of financing at this stage is the own funds of the project initiators, as well as government grants, contributions from individual investors.

The second (starting) stage, at which the organization of new production takes place, is characterized by a rather high need for financial resources ah, while the return on investment is practically non-existent yet. The main part of the costs here is associated not so much with the development of a product production technology, but with its commercial component (the formation of a marketing strategy, market forecasting, etc.). It is this stage that is figuratively called the "valley of death", because due to lack of funds and inefficient management, 70-80% of projects cease to exist. Large companies, as a rule, do not participate in investing in a venture enterprise during this period of its development; the main investors are individuals, the so-called angels or business angels, who invest their personal capital in the implementation of risky projects.

The third stage is the stage of early growth, when the production of the product begins and market valuation. A certain profitability is provided, however, capital gains are not significant. At this stage, the venture enterprise begins to be of interest to large corporations, banks, and other institutional investors. Venture capital firms are created for venture capital financing in the form of funds, trusts, limited partnerships, etc. Venture capital funds are usually formed by selling a successfully operating venture capital enterprise and creating a fund on certain period with a certain direction and volume of investment. When creating a fund in the form of a partnership, the organizing company acts as the main partner; she contributes a small part of the capital by raising funds from other investors, but is fully responsible for the management of the fund. Once the target amount has been raised, the venture capital firm closes the subscription to the fund and proceeds to invest in it. Having placed one fund, the firm usually proceeds to arrange subscriptions for the next fund. A firm may manage multiple funds at various stages of development to help spread and mitigate risk.

At the final stage of development of a venture enterprise, venture investors withdraw from the capital of the companies they finance. The most common ways of such an exit are: buyout of shares by the remaining owners of the financed company, issue of shares through the initial placement of capital, takeover of the company by another company. In the US, successful venture capital investments usually end up with a public offering on the NASDAQ (the largest stock market for young innovative companies).

With the development of new technologies and the wide distribution of manufactured products, venture enterprises can achieve a high level of production profitability. At average rate yields on government securities of 6% venture investors invest their funds, counting on an annual return of 20-25%.

Thus, based on the nature of venture capital, venture capital is risky and is rewarded by the high profitability of the production in which it is invested. Venture capital has a number of other features. These include, in particular, the orientation of investors on capital gains, and not on dividends on invested capital. Since a venture company begins listing its shares on the stock market three to seven years after the investment, venture capital has a long waiting period for market realization and the amount of its growth is revealed only when the company enters the stock market. Accordingly, the founder's profit, which is the main form of income for venture capital, is realized by investors after the shares of the venture enterprise begin to be quoted on the stock market.

Venture capital is characterized by the distribution of risk between investors and project initiators. In order to minimize risk, venture investors distribute their funds between several projects, while at the same time one project can be financed by a number of investors. Venture investors, as a rule, seek to directly participate in the management of the enterprise, making strategic decisions, since they are directly interested in the effective use of invested funds. Investors control the financial condition of the company, actively contribute to the development of its activities, using their business contacts and experience in the field of management and finance.

The attractiveness of capital investments in venture enterprises is due to the following circumstances:

acquisition of a stake in a company with a likely high profitability;
ensuring a significant increase in capital (from 15 to 80% per annum);
availability of tax benefits.

Volumes of venture financing in industrialized countries growing dynamically. Venture capital is acquiring a decisive role in the development of the economy. This is due to the fact that it was thanks to venture enterprises that it was possible to implement a significant number of developments in the latest areas of industry, to ensure the rapid re-equipment and restructuring of production on a modern scientific and technical basis.

The largest volume of venture capital investments in the world falls on the United States (about $22 billion), followed by the countries of Western Europe and the Asia-Pacific region by a significant margin. In Russia, venture capital is in its infancy: there are currently 20 venture capital funds operating here, managing financial assets in the amount of about $ 2 billion.

The role and place of venture funds in solving social and economic problems. The main directions of the formation of the profitable part of venture funds and the direction of the use of funds. Venture company as a management body, goals and objectives.

VENTURE FINANCING

One of the main sources of funding innovative projects is venture capital.

Venture (risk) capital- a form of capital investment in investment objects with a high level of risk, counting on the rapid receipt of a high rate of return. Venture capital is formed to finance venture companies, which are business cooperation between the owners of the company and the owners of venture capital to implement projects with a high degree of risk in order to obtain significant (above the market average) income.

Venture capital financing consists of financing investments in new areas of activity, therefore it is accompanied by high risk in exchange for generating significant income.

A venture enterprise is an enterprise whose activities are related to the development of new types of products, services, technologies that are unknown to the consumer, but have a great market potential, which is associated with a high degree of risk of their promotion on the market. However, the innovation of their activities provides a high income.

Venture financing is based on a preliminary assessment of the investment project, the activities and financial condition of the company implementing this innovative project. Venture financing is carried out in the form of corporatization.

Venture funds are created to finance ventures. Venture fund investment resources are intended for venture capital companies that have a great chance of growing into large profitable enterprises. These odds come with a high risk. Therefore, a venture fund is characterized by the distribution of risk between project initiators and investors.

One of the main ways to protect against investment risks is insurance. This applies to venture capital as well. The mechanisms for organizing insurance and guarantees of attracted investment resources for venture projects include the creation of a system of state risk insurance for venture investors.

The main principles of the venture fund are:

1) creation of a venture capital fund in the form of a partnership, in which the organizer is fully responsible for the use of the funds of the fund. For this, a business plan is being developed;

2) placement of funds of a venture fund for various projects with a risk degree of not more than 25% and with a return on investment period not exceeding 3–5 years;

3) "exit" of venture capital from a venture enterprise by turning it into an open joint-stock company with the placement of shares of a venture enterprise on the stock exchange or their sale to a large corporation.

Question 42. Foreign investments, their role in the country's economy.

Entrepreneurial investment . Direct, portfolio and other investments.

Direct foreign investments The rights of foreign investors in the management of an enterprise in the territory of another state.

Portfolio investment. The rights of the investor to receive income and control over investment objects.

Other investments.

Conditionality of quantitative boundaries between direct and portfolio investments in the world economy.

The priority importance of direct investments, their significant impact on national economies and international business in general. The role of direct foreign investment.

FOREIGN INVESTMENTS

Foreign investment allocate:

1) state foreign investments carried out by state budgets (state loans, loans, grants, financial assistance);

- private foreign investment - the investment of foreign investors in investment objects located outside the country;

- mixed foreign investments - investments carried out outside the country jointly by the state and private investors.

Direct foreign investment the acquisition by an investor of at least 10% of a share, shares (contribution) in the authorized (share) capital of a commercial organization established or newly created in the territory of the Russian Federation in the form of a business partnership or company in accordance with the law of the Russian Federation; capital investment in fixed assets of a branch of a foreign legal entity established in the territory of the Russian Federation; leasing equipment with a customs value of at least 1 million rubles by a foreign investor on the territory of the Russian Federation.

Portfolio foreign investment - capital investments in shares that do not give the right to investors to influence the activities of the enterprise, constituting less than 10% of the total share capital; investments in bonds, promissory notes, other debt obligations, state and municipal securities.

Other investments include deposits in banks, trade credits etc.

Among the listed types of investments, priority is given to foreign direct investment, as they have a beneficial effect on the development of the country's economy:

- promote growth investment activity in the country;

- stimulate investments in the renewal and development of the main production;

- contribute to the introduction of advanced management, achievements of science and technology in production;

- activate competition and stimulate the development of small and medium-sized businesses;

– ensure the growth of employment of the population, increase in incomes of the population;

- provide an increase in tax revenues to the budget of the host country, etc.

Despite the efforts of the Russian Federation, the state of the investment climate in the country cannot be considered attractive to foreign investors. Investment attractiveness Russian economy for foreign investors it is provided with many qualitative parameters:

- an extensive national market, a wide variety of investment objects, which began with economic growth in the country;

- availability of highly skilled and relatively cheap labor force;

- the presence of a variety of rich natural resources;

– reforming the taxation system in terms of reducing the tax burden, etc.

Content

Introduction

Chapter 1. Theoretical aspects venture financing and investment design

1.1 Economic essence of investment projects

1.2 Venture financing of investment projects: concept, essence and its elements

1.3 Stages of venture financing

Chapter 2. Analysis and specifics of venture financing in Russia

2.1 Features of venture financing in Russia

2.2 Analysis of the venture investment market in Russia

2.3 Problems and prospects of venture financing in Russia

Conclusion

List of used literature

Introduction

AT developed countries ah venture investment is the most important source of extrabudgetary funding for scientific research and innovation. Venture investors' funds are invested in the authorized capital of newly created small and medium-sized enterprises that are focused on the development of new science-intensive products. After the development of a high-tech enterprise on the market, the venture fund sells its share (shareholding) in this enterprise that has increased many times in price, which ensures a significant return on invested capital.

Development of the venture investment market in Russia this moment is one of the priorities public policy in the field of innovation and a necessary condition in order to intensify innovation and increase the competitiveness of the domestic industry.

The relevance of the topic of the course work is due to the fact that in Russia the vulnerability is already recognized at the state level economic model, which is based on the export of raw materials. Therefore, the development of science-intensive industries is now being actively discussed. And the most important task in solving this problem is the creation of an effective system of venture financing. Because it is on this that the successful operation of the innovation mechanism, which is responsible for the transformation of the results of scientific research into commercially profitable, will depend. products that are in demand in the market.

The object of research in this paper is the Russian market of venture investments.

The subject of the research is the organization of venture financing of investment projects.

The purpose of the course work is to study the features, problems and prospects of venture financing of investment projects in Russia.

In connection with this goal, it is necessary to solve the following tasks:

Determine the economic essence of investment projects.

Consider venture financing of investment projects and reveal its concept, essence and elements.

Identify the stages of venture financing.

Outline the features of venture financing in Russia.

Analyze the venture investment market in Russia.

To identify the problems and prospects of venture financing in Russia.

The degree of development of the problem of venture financing in Russia at the moment is not yet sufficiently developed, however, in last years The theoretical base on this issue is growing rapidly. The theoretical basis of the study is the works of Russian and foreign scientists-economists, specialists in the field of investments: Alekseev A., Avdeeva I., Andrianov A., Dobrovolsky V., Zubchenko L., Konanykhin O., Lebedev V., Salimov L., Fisher P. and many others.

Information base for writing term paper served educational literature, periodicals, regulations RF, statistical data.

The methodological base for writing a term paper included the following general economic methods: logical, comparative and historical analysis, synthesis, and a systematic approach.

The course work consists of an introduction, two chapters, a conclusion, a list of references. The first chapter discusses the theoretical aspects of venture financing and investment design, shows the stages of venture financing, the second chapter analyzes venture financing in Russia, identifies the specifics of venture investments, and identifies problems and prospects for venture capital investment.

Chapter 1 Theoretical aspects of venture financing and investment design

1 Economic essence of investment projects

The definition of the term "project" is enshrined in methodological recommendations according to the evaluation of the effectiveness of investment projects approved by the Ministry of Economy of Russia and the Ministry of Finance of Russia, these are:

a set of documents containing the formulation of the goal of the forthcoming activity and the definition of a set of actions aimed at achieving it;

a set of actions (works, services, economic acquisitions, managed operations and decisions) aimed at: achieving the formulated goal.

According to the Law on investment activity an investment project is a justification for the economic feasibility, scope and timing of implementation capital investments, including the necessary project documentation developed in accordance with the legislation of the Russian Federation and duly approved standards (norms and rules), as well as a description of practical actions for the implementation of investments (business plan).

In modern literature, an investment project is understood as a comprehensive action plan (includes capital construction, acquisition of technologies, purchase of equipment, training of personnel, etc.), which is aimed at creating a new or modernizing (expanding) the existing production of goods and services in order to obtain economic benefits or achieve another beneficial effect. The term "investment project" also refers to a discrete set of resources, investments and certain actions aimed at removing or mitigating various kinds of restrictions on development and achieving higher productivity and improving the life of a certain part of the population over a given period of time. The project includes the problem (intent), the means that could solve the problem, and the results of the decisions obtained in the process.

One of the main areas of activity of any organization is investment operations, i.e. transactions that involve the investment of funds in the implementation of projects that provide future benefits over a sufficiently long period of time.

Investment design serves, first of all, as a stepping stone to get an answer to the question: "How interesting is the investment attractiveness of the project under development in the current market situation?"

Investment design is the development of a comprehensive financing strategy for a business unit or enterprise as a whole. The basis of investment design is a detailed analysis of the market, the forecast of production and sales, as well as the capital structure.

Therefore, the investment project should address the following issues:

formation (or analysis of existing) demand and determination of the potential capacity of the sales market;

identifying the key factors that underlie the success of a future project and determine the main idea of the project;

a detailed description of the product in terms of meeting the needs.

In investment design, a project is most often viewed as a process. Consideration of the project as a structure allows the division of the project according to the main principles and features.

According to the nature of the elements, the project can be divided into:

project documentation;

production facilities;

industrial premises;

technological equipment;

technology of production and work;

production product, works, services.

Depending on the nature of the project itself, there may be other elements, or the same ones, but decomposed into components in more detail.

Providing elements of the project:

staff;

raw materials;

territory, premises, accommodation;

contacts, agreements, contracts;

other elements that contribute successful development and project implementation

Activities (processes) as project elements:

marketing;

supplies;

construction;

design;

installation of equipment;

putting the facility into operation;

exploitation;

production of products, works, services;

product sales.

One of the main elements in the structure of the project are its participants, as they ensure the implementation of the ideas that are embedded in the project. The number of participants, depending on the degree of complexity of the project, can be from one to hundreds. Each of them has its own functions, as well as tasks, the degree of participation in the project and its own measure of responsibility for its results.

Each of the project participants should be considered:

customer - the future owner and user of the project results. The customer can be either one company or several companies that have combined their efforts, interests and capital to implement the project and use its results.

An investor is someone who invests in a project. Often the Investor is also the Customer at the same time. If the Investor and the Customer are not the same person, the Investor concludes an agreement with the Customer.

designer - developer of design and estimate documentation.

supplier - provides material and technical support for the project (purchases and deliveries).

contractor - a legal entity responsible for the performance of work in accordance with the contract.

consultant - these are firms and specialists engaged on contractual terms to provide consulting services to other project participants on all issues and at all stages of its implementation.

project manager is a legal entity, a project manager, to which the Customer (or Investor) delegates the authority to manage the work on the project: planning, monitoring and coordinating the work of the project participants.

project team - specific organizational structure, headed by the project manager and created for the duration of the project in order to effectively achieve its goals.

licensor - a legal or natural person - the owner of licenses and "know-how" used in the project. The licensor grants on commercial terms the right to use the necessary scientific and technological achievements in the project.

the bank is one of the main investors providing financing for the project. The bank's responsibilities include the continuous provision of the project with funds.

Thus, the implementation of the project takes place in a dynamic environment that has a certain impact on it: economic, social, financial, organizational, etc. Each of these impacts under certain conditions can be critical for the project. In this regard, the project environment should be analyzed and factors of the project environment that can have a significant impact on its implementation should be identified.

2 Venture financing of investment projects: concept, essence and its elements

There are many definitions of venture financing, but in any case they all come down to its functional task: to promote the growth of a particular business by providing certain amounts of money in exchange for a share in the authorized capital or any block of shares.

Venture capital is long-term, risky capital that is invested in the shares of newly created and rapidly growing organizations in order to obtain high returns.

The name "venture" comes from the English "venture" - "risk venture or undertaking". The term "risk" itself means that there is a great risk in the relationship between the investor who owns the capital and the entrepreneur who claims to receive money from him. "Venture" ("risk") capital is often confused with bank lending or charitable activities.

The purpose of venture financing is to obtain ultra-high returns on capital investment. The investor receives this profit in the form of a return after the nth number of years by selling shares or shares of a prosperous company that have increased in price to business partners for open market or a large firm that operates in the same area as the growing company.

But venture financing of investment projects, unlike bank lending almost always carried out in small and medium-sized private or privatized enterprises without providing any collateral or mortgage. Venture capital funds or companies prefer to invest in enterprises whose shares are not traded in free sale on the stock market, but are fully distributed among shareholders - individuals or legal entities. Investments come either in the share capital of closed or open joint-stock companies in exchange for a share or block of shares, or are provided in the form investment loan, which is most often medium-term by the standards of Western analysts: from 3 to 7 years.

In life, of course, the most common form of venture financing of investment projects is the most common, in which part of the funds is directed to equity capital, and the other is contributed in the form of an investment loan.

Venture investment is a specific financial instrument that is designed to accelerate the development of industries that are characterized by high added value and dynamically growing new markets.

The advantages of venture investment, as the main source of financing in the field of small and medium-sized innovative businesses, lie in its two features:

A growing enterprise can receive investments when other financial sources refrain from risky investments (in the absence of stable cash flows and collateral).

This type of financing, to a greater extent than any other, eliminates the contradictions between the investor and the entrepreneur, since its nature lays the foundations for combining the goals and objectives of increasing the value of the business both for entrepreneurship - a socially useful type of activity, and for capital - a means of implementing entrepreneurship. .

The subjects of venture financing are: financial acceptors - venture companies and start-up entrepreneurs; financial donors - individuals, companies and specialized funds; financial and information intermediaries that provide communication between representatives of the first two groups.

Objects of venture investment - companies that, according to me, are capable of venture capitalist, to a rapid increase in its own market value through the development and implementation of innovations or reengineering of business processes.

Speaking about venture financing, it is worth mentioning the differences from other types of financing:

The first fundamental difference is that in the case of venture financing, the necessary funds can be provided for a promising idea without guaranteed provision with the existing property, savings or other assets of the entrepreneur. The only collateral is a specially agreed share of shares of an already existing or newly created company. Moreover, unlike traditional direct investments, the possibility of losing the invested funds is allowed from the very beginning if the funded project does not bring the expected results after its implementation. Venture capital investors go for the sharing of all responsibility and financial risk along with the entrepreneur.

active participation of investors in the management of financed projects at all stages of their implementation, starting from the examination raw entrepreneurial ideas and ending with the provision of liquidity of the shares of the newly created company, represents the second fundamental difference between the venture capital business and ordinary commercial lending operations.

The third fundamental difference is related to the fact that venture funds, like no other investor (except perhaps the state), are ready to invest in new science-intensive developments. Even when accompanied by a high degree of uncertainty. After all, it is here that the largest potential reserve of profit is hidden.

Features of venture financing:

Venture financing is associated with mutual investments in shares, that is, with risk and stock trading.

The venture capitalist does not invest directly in the company, but in its share capital, the other part of which is the intellectual property of the founders of the new company.

Investments are made in companies whose shares are not yet listed on the stock exchange.

Venture capital is directed to small high-tech companies focused on the development and production of new science-intensive products.

Venture capital is provided to new high-tech companies for a medium and long term and cannot be withdrawn by a venture capitalist at will until the end of the company's life cycle.

Venture funding is provided primarily to companies with growth potential, rather than to companies that are already generating high profits.

Venture investments are not provided forever, but only for a certain time.

Venture financing is a kind of loan to new companies, a long-term loan without obtaining guarantees, but at a higher interest rate than in banks.

Since the decisive role in the success of an enterprise often belongs not so much to the idea underlying the product and technology as to the quality of enterprise management, the venture capitalist delves less into the intricacies of a scientific idea, preferring to conduct a detailed assessment of the potential capitalization of this idea and the organizational skills of the head and management of the company .

From the above, we can conclude that venture financing is a kind of investment in new high-tech companies to ensure their formation, growth and development in order to make a profit in case of successful project implementation. That is, it is a high-risk investment of private capital in high-tech small companies that are capable of producing science-intensive products or services that are in high demand in the future.

1.3 Stages of venture financing

The development of an innovative company is almost always directly related to the need to attract external investment. Investing in innovative projects is carried out by venture investors.

The initiators of innovative business consider the process of creating and developing a business as an innovative business project. Venture investors consider the same process from the point of view of obtaining income on invested investments, and for them this is an investment venture project.

Venture financing of young innovative companies is carried out, as a rule, in stages, but different stages are financed by different venture investors. The venture capitalist does not invest everything at once, he allocates certain amounts, sufficient for the implementation of the next stage. That is, with a periodic reassessment of the prospects of projects being implemented by the funded company, he may decide that investment should be suspended, which, in turn, disciplines the managing element of the venture company, excluding the possibility of investing capital in unprofitable projects.

Two views on the same process determine the discrepancies in the description of this process. In the classification of the stages of development of an innovative company proposed below, both the goals and objectives for the development of venture business and the goals and objectives for venture financing of the stages are presented.

Figure 1. Stages (stages) of venture financing

"Death Valley" - the period of development of a venture capital company at the initial stage. At this stage, it is difficult to assess the risk of investments, the risk is high and it is difficult to attract funds from venture capitalists (only the most hardy and adaptable people can go through this period). At this stage, companies spend money on marketing, product commercialization, but still do not make a profit.

Seed (sowing) stage (Seed stage). The “seed stage” of a project is the earliest stage in the development of venture projects that exist only on paper or in the form of laboratory developments.

"Seed capital" or "seed financing" (Seed Capital / Financing (or Seed Money)) is the initial capital that is contributed at the earliest (seed) stage of project development. This is funding that is provided for research, evaluation, and development of a company's initial concept before it reaches the start-up phase. All funds raised at this stage form the Seed Fund.

Financing at the "seed" stage is most often carried out at the expense of own funds project initiators, business angel funds or funds borrowed from acquaintances.

The initial stage "Startup" (Start-up). At this stage, the venture company has not yet been developed properly, it does not have a relatively long history on the market, or it is still the earliest stage of sales, or it is an organizational stage, or the business has already been launched, but it has been existing for quite a short time and has not yet sold its products for money. .

The initial stage of "startup". The initial stage of financing is the provision of funds to a venture company for product development and initial marketing. The funding provided to venture capitalists at this stage is referred to as Start-up Capital.

Stage (stage) "Expansion" (Expansion). "Expansion" (Expansion) - at this stage, the venture company sets itself the goal of expanding the business, increasing sales of products, market share, production capacity and the volume of products itself, expanding office space, etc.

The finance that ensures the growth of a venture company and the expansion of its activities (“Expansion Capital” or “development capital” - Expansion Capital or Development Capital) helps to achieve break-even operation or operate at a profit. Possible Ways to Use Venture Capital: Development Finance production capacity, market or product development, providing additional working capital.

Stage (stage) "Intermediate" (Mezzanine). "Mezzanine financing" (Mezzanine Financing) - at this stage, immediately preceding the public sale of shares, borrowed funds are a cross between equity and secured (to varying degrees) debt obligations. In practice, in this scheme, some income is deferred in the form of accrued interest in the "pay in kind" and/or "reward in securities" type. A fund that engages in mezzanine financing is called a Mezzanine Fund.

Stage (stage) "Exit" (Exit). "Exit" (Exit) - the final stage of the venture capital investment process, in which the block of shares belonging to the venture investor is sold, and he himself exits the company. An investor's exit from the company can be implemented in various ways: direct sale; sale by public offering (including IPO); write-off; payment of preferred shares/loans; sale to another venture capitalist; sale of a financial institution. At this stage, Exit Management is carried out - a venture investor chooses a strategy for his exit from the company upon termination of investment, liquidation of his share in the venture company. The final element is getting the maximum income.

All stages of financing development are divided into two stages: "Early stage" (Early stage) and "Late stage" (Later stage).

"Early Stage" (Early Stage) - "seed" and "startup" are the stages of development of the company. Venture capital funds that specialize in investing in the early stages of development of new high-tech companies are called "early stage funds" (Early Stage Fund). If desired, these funds can receive preferential rights to participate in the investment of successfully developed companies and at later stages, when the risks are significantly reduced (including financing of the stage immediately preceding the IPO). "Early Stage Investment/Financing" - financing of companies that are at an early stage of development and do not have any long market history is carried out by business angels (Business Angel) or venture funds (Early Stage Fund).

"Later Stage" - the stage of development of the company (including the stages of expansion of capital, replacement capital and buyout), at which funds are required to expand production and sales.

At the stages of early growth and expansion, more and more information about the final product appears, the risk of investments is significantly reduced, the potential profitability of a business project becomes more obvious, the number of people who want to invest in a project increases, among them there are strategic investors who are aimed at gaining control over the enterprise, return on investment is declining, but still high.

At the mezzanine and exit stages, the technology has already been developed and tested on the market - the venture company is mastering the mass production of new products. There is a high probability of a merger, takeover or buyout of a venture company by one of the strategic investors. But even if this does not happen, the venture company still ceases to be such, it is reorganized into an open joint-stock company, the status of the enterprise changes from high-risk to stable and growing.

The period of stay of a venture investor in the company is called “cohabitation”.

Life cycle investment in venture business usually does not exceed 5-7 years. During this time, the venture company must achieve such economic results, which would allow venture investors to fully return the funds and exit the business with a profit.

Based on the foregoing, it should be noted that a venture company is created to solve a specific problem, and after the completion of this work, it is either disbanded and ceases to operate, or absorbed by a large firm (often one of the founders), or independently, with a favorable commercial environment and the clear competitiveness of the created product enters the market and, through the sale of commercial development, strengthens its financial position, creates its own production and organizes commercial operations based on updated innovations. In this case, the former venture company organizes the production of small batches of products, sells them profitably, fulfills its obligations to investors and, through the sale of licenses, raises the necessary funds to expand its own production.

Chapter 2 Analysis and specifics of venture financing in Russia

1 Features of venture financing in Russia

In Russia, the venture capital industry was introduced from outside in the early 1990s. Its emergence was not the result of an initiative that responds to the internal needs of the development of local entrepreneurship and the market, but the result of political and administrative decisions, behind which stood the desire of international financial institutions development to contribute to the transforming economy of the country in the formation market institutions.

In recent years, the Russian economy has become increasingly attractive for private equity and venture capital funds. The priority areas of state policy aimed at creating a favorable environment for the development of small and medium-sized companies (including high-tech ones), as well as the generally positive dynamics of the development of the Russian economy, lead to the fact that more and more favorable conditions are being created for direct and venture investors in Russia to activities.

Venture capital in Russia has a number of features, some of which contribute to the development of venture business, while others significantly constrain and limit it.

The main positive factors, without a doubt, include the following:

A large number of projects that are almost or have already been brought to the stage of commercial use. Moreover, in a number of cases, the launch of such projects requires a relatively small share of the actual investments, the rest of the necessary financing can be borrowed funds.

The presence of a significant number of projects with significant export potential, which greatly facilitates the task of attracting the necessary funds.

The presence of a significant scientific and technological gap from the world average in a number of industries, which still persists, despite the long-term chronic shortage of funds in the field of high technologies.

Highly qualified personnel.

Negative factors include:

By virtue of economic instability in Russia, companies are forced to maintain their competitiveness “through fundamentally different schemes of doing business and organizing financial flows from Western ones.” As a result, the investee company is not perceived as a "full-fledged object for investment", which entails the need to pay too high a "price" for investments.

The authorized capital in the overwhelming majority of Russian companies is a symbolic value, and its repeated increase is associated with significant costs. Because of this, many investors are faced with the proposal to distribute the volume of investments between a relatively small amount of their own investments, corresponding to their share in the capital of the new company, and the main share of financing, which is formalized as a long-term loan.

Many projects in Russia are viewed by Western experts as extremely small. Whereas the costs of expertise usually do not depend (or do not strongly depend) on the size of the project. Because of this, many projects are not considered due to possible high unit costs.

One of the most important negative factors is the poor information infrastructure of venture capital (for example, information about the presence and specialization of various financial institutions that could consider projects from a given region or industry, the requirements that apply to projects.)

A venture investor is forced to carry out a much larger scope of functions related primarily to setting up and developing business processes in the invested company, which should be compensated by more favorable conditions participation in a new company.

In many projects, the issue of developing incentives for the investor is not given due attention. Basically, the emphasis is on the technical merits of products.

And also a significant problem is the lack of a legal framework for venture capital in Russia.

As for the structure of venture capital, like any venture capital market (on the supply side), it consists of an institutional sector, consisting mainly of venture capital funds, and an informal sector, represented by individual investors (“Business angels”).

Venture funds in Russia began to be created in 1994 on the initiative of the European Bank for Reconstruction and Development (EBRD). Regional Venture Funds (RVF) were formed in 10 different regions of Russia. Simultaneously with the EBRD, another major financial institution is the International Financial Corporation(International Finance Corporation) also decided to participate in the emerging venture structures together with some of the world's well-known corporate and private investors. In 1997, 12 venture funds operating in Russia formed the Russian Venture Investment Association (RVCA) with headquarters in Moscow and a branch in St. Petersburg.

There are also certain difficulties for informal venture financing in Russia:

The high risks inherent in innovative projects at the early stages of implementation in Russia are superimposed by general economic and political instability and uncertainty;

Difficulty in finding suitable candidates for investment due to poor infrastructure development;

Low degree of entrepreneurial culture and skills required in the preparation of investment projects among Russian IMTFs;

A significant amount of criminal capital in the Russian economy, which exacerbates the wary attitude of entrepreneurs towards investors;

Since the technology business in Russia is just beginning to develop, only a small proportion of potential business angels have an idea about the specifics of promoting technology to the market.

In essence, the task of transferring Russia to an innovative path of development requires the strengthening of existing and the creation of additional institutions for the development of the economy, including the accelerated formation of a venture financing institution.

2 Analysis of the venture investment market in Russia

venture financing investment

The Russian venture capital market has been growing rapidly in recent years. The most conservative estimates indicate that in 2007-2012 the Russian venture capital market showed at least a fourfold increase in terms of both the volume of investments and the number of transactions. In 2007, RVCA estimated the volume of the Russian venture capital market, accumulated as a result of 34 transactions, at $108.3 million. By 2009, the annual volume of investments increased by 49%, while the number of transactions doubled. World financial crisis the end of 2008 had a negative impact on the market performance in 2009, but the recovery was quick. In 2010, there was a further increase in volume - by 24% compared to 2009.

The joint efforts of market participants and the government led in 2011 to an increase in investment volumes to $746.2 million. In 2012, the venture market consolidated its success, setting a new volume record of $1,213 million (up 63% year-on-year). During this period, 267 venture deals were recorded, which is 34% more than in 2011. By the end of the year, cumulative investment since 2007 had reached $2.51 billion. In other words, the volume of investments in 2012 was almost the same as in the previous five years.

The volume of the venture financing market in Russia in 2013 reached $3.25 billion. In total, 419 transactions were concluded last year, which is 25% higher than in 2012. The average transaction volume was $7.7 million, according to J "son & Partners Consulting How much the market grew in money terms compared to 2012, the analysts did not specify.

According to J&P, there were 13 cash-out transactions last year for a total of $2.34 billion (transactions related to the sale by current shareholders of their shares or stakes in the company). The volume of new financing (cash-in) in the total structure amounted to $912.5 million. A total of 406 deals of this kind were made. The average volume of a transaction involving new financing was $2.24 million.

Figure 2. Number of transactions in the Russian venture capital market from 2007 to Q3 2013

According to respondents, in 2014 the number of venture capital deals in Russia will increase by 20%. Barometer of "venture mood" Russian investors scored 65 out of 100 points.

Figure 3. The volume of investments in the Russian venture capital market in the period from 2007 to the 3rd quarter of 2013, in million dollars (yellow indicates the stages of start-up and product development, gray indicates the stages of testing and product sales)

Figure 4 - The volume of venture capital investments cumulatively since 2007, in million dollars (the dotted line indicates the number of venture deals, yellow - the start-up and product development stages, gray - the testing and product sales stages)

The Russian venture capital market performed well not only in terms of investment volume, but also in terms of capitalization of venture funds. According to the RAWI, in the first six months of 2013, 173 funds managed a total of $5,211 million. These statistics do not take into account the venture capital sections of private equity funds, which may lead to discrepancies with data published by other sources.

The driving force behind the record growth in fund capitalization, which exceeded $1.3 billion in 2013, was the capitalization of existing funds and the creation of new ones. This result was generally opposite to the negative result of 2012 in key global markets.

Each year, the number of new funds during the period under review significantly exceeded the number of liquidated ones. At the same time, there is a downward trend in the average size of a new fund.

Figure 5 - Capitalization of venture funds, in millions of dollars (the dotted line indicates the accumulated capitalization of existing funds, in yellow - the capital raised, in gray - the capitalization of liquidated funds)

Figure 6 - Number of venture capital funds (dotted line indicates active funds, yellow color - new funds, gray color - liquidated funds)

Based on these data, we can conclude that the Russian market is still far from consolidation. Several management companies with a good investment history continue to successfully attract new cash, however, none of them took a significant share of the market. it distinguishing feature emerging markets, whose consolidation phase is yet to come. During next years should appear more big players with a positive history, sound strategy and a deep understanding of the market, which will attract a significant share of funding and allow the market to consolidate (at least in part).

3 Problems and prospects of venture financing in Russia

The Russian venture capital market has significant potential for further growth and medium term can double. At the same time, in order to realize this potential, the market needs qualitative changes:

expanding opportunities for large-scale exits, the accumulation of critical experience by new players (including the experience of unsuccessful investments);

strengthening the role of large Russian and foreign corporations as consumers of innovations and a source of capital for the venture capital market;

expansion of venture activity outside the IT sector.

Positive results of the development of the venture investment market in the Russian Federation:

with the direct participation of RVC OJSC, a self-developing venture capital industry was created in the Russian Federation; solved the problem of involving private capital in the industry;

the inflow of private capital into the Russian venture investment market has grown significantly;

thanks to significant growth the activity of private investors and the launch of market reproduction mechanisms, the domestic venture investment industry is no longer dependent on a single source of funding - the state;

over the past four years, the volume of venture investments in the Russian Federation has grown almost 10 times, and over the past three years, at least, it has tripled in volume;

the successes achieved are noted not only by Russian experts, but also by authoritative international organizations. According to the results of the Dow Jones VentureSource study, Russia has risen to 4th place in Europe in terms of venture capital investments in high-tech industries;

Dow Jones VentureSource's estimates, which are complementary to the Russian Federation, are actually conservative, since a significant number of transactions do not fall into the field of view of analysts and researchers;

basic mechanisms and tools to support the development of the venture investment market have been created and are operating;

the basic elements of the market ecosystem have been built;

On the whole, the achieved results make it possible to put on the agenda a new ambitious task: a multiple increase in the share of innovative products (goods, services) in country's GDP.

Negative trends and problems that need to be addressed. Along with positive trends, the Russian venture investment market is still characterized by a number of problems:

presence of sectoral and stage disproportions;

"problem of scale";

the immaturity of the mergers and acquisitions (M&A) market and, as a result, noticeable difficulties for funds when exiting companies, the inability to direct the released funds back to the venture capital market.

poor quality of fund management caused by insufficient integration of the Russian venture capital industry with the global market;

rising valuations of companies in the IT sector, associated with an oversupply of funds in the venture capital market and a lack of investment objects, as well as an insufficient degree of globalization of Russian venture capital investors and technology companies (one of the consequences of sectoral imbalances);

the absence in the Russian legal field of the possibility of effective implementation of convenient and familiar mechanisms used by venture funds when structuring transactions, such as convertible loans and options.

non-compliance of the requirements of public funding organizations with industry standards in terms of the use of foreign jurisdictions (English law, favorable taxation) for the implementation of investment transactions;

the presence of a number of unresolved problems in the early-stage venture investment segment, including the unrealized potential of the grant financing system;

the absence or a small number of outstanding successes of portfolio companies in the international arena.

significant impact on the market of a number of barriers and internal problems institutional nature.

In my opinion, in order to achieve accelerated market development, it is necessary to more actively address development issues human capital, protection of intellectual property, strengthening the role of university, applied and fundamental science in stimulating innovative activity. Other urgent tasks are to reduce the regional imbalance in the development of the innovation and venture ecosystem, improve the overall quality of the investment climate and entrepreneurial culture in Russia.

Conclusion

Thanks to the efforts of the state, private business, RVC and other development institutions over the past few years, Russia has managed to solve the problem of creating an independently developing venture investment industry. The Russian venture capital market is growing both quantitatively and qualitatively. The main elements of the venture investment ecosystem have been formed in the country. But most importantly, the activity of private investors, including foreign ones, is noticeably increasing.

At the same time, it is obvious that the young and rapidly growing Russian venture investment market is still characterized by a number of disproportions - both stage-by-stage, associated with an insufficient supply of capital at the seed and pre-seed stages of innovative projects, and sectoral ones: in most priority industries, apart from the sectors of the Internet, e-commerce and telecommunications, there is a lack of supply of capital. There is also the problem of scale, which is typical not only for the venture capital industry, but also for the entire segment of the Russian knowledge economy: the share of innovative business (products and services) in the country's total GDP is still relatively small.

The development of the industry in the coming years will largely be determined by the effectiveness of the efforts made by all participants Russian market venture investment. Based on the mechanisms of public-private partnership that have proven their effectiveness, it is necessary to achieve harmonization of the stage and sectoral structure of the Russian venture capital market, its sustainable growth and globalization.

How state institute development of the venture industry of the Russian Federation and the national innovation system, the Russian Venture Company will contribute to the achievement of this goal by using an effective set of financial and non-financial instruments aimed at supporting technology entrepreneurship in the early stages and projects implemented in priority industry areas, as well as further involving Russian and international private capital to the Russian venture capital market, improving the market infrastructure, facilitating the entry of Russian innovative business into the global market and its integration into international value chains.

The Russian industry of venture investment is entering a new phase associated with the transition from the stage of "launching" the market to its harmonization and growth.

Analysts are optimistic about the prospects of the Russian venture capital market, which will be developed through close interaction and partnership government agencies authorities, development institutions and business representatives, including international ones.

List of used literature

the federal law dated February 25, 1999 No. 39-FZ “On investment activities in the Russian Federation carried out in the form of capital investments” (as amended and supplemented on December 28, 2013)

Federal Law of July 9, 1999 "On Foreign Investments in the Russian Federation" (as amended and supplemented on December 6, 2011 N 409-FZ).

A. Alekseev: Investment structure: how advanced is it?// The Economist.-2010.-№3.-P.6-11

Avdeeva I. “Investment climate in Russia: how attractive are investments in Russia for foreign and direct investors” // Entrepreneurship. 2011. No. 7

A.Yu.

Dobrovolsky V.P. Investment potential of the Russian economy and points of growth // Money and credit.-2011.-№9.-p.30-36.

Zubchenko L.A. Foreign investments and economic growth of Russia.// Economic and social problems of Russia.-2010.-№1.-p.136-154.

Konanykhina, O.V. "Study investment attractiveness Russia 2012” // Bulletin of ASTU. 2010. №2.

Lebedev V.M. Foreign investment in the Russian economy-development trends// Finance.-2011.-№8.-p. 23-27.

Salimov L.N. Directions for increasing investment activity in Russia// Economics and Management.-2010.-№4.-p. 53-60.

Fisher P. Direct foreign investments for Russia: The strategy of industrial revival: Per. from English. - M.: Finance and statistics.-2012.-p.340-358.

Research work "Research of the Russian and world venture market for 2007-2013", EY, 2014.

Research work "Lines of work of RVC OJSC for 2014-2016", Moscow, RVC, 2013.

Research work “Market Review: Private equity and venture investments in Russia, 1st half of 2013, RVCA, 2013.

Research work “Early-stage venture investment market: Key trends”, Moscow, VTsIOM, RVC, 2013.://www.cnews.ru/ [High-tech publication]://www.pcweek.ru/ Information Technology and solutions]

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The competitiveness of a country depends to a large extent on successful innovation, effectively commercialized research and development results. One of the main economic instruments The mechanism of venture (risk) financing that has been providing the innovative development of the leading Western countries over the past decades is the mechanism of venture (risk) financing.

In Russia, the history of venture capital funding is quite a bit - just over 10 years. And after 12 years, the main venture capital players are still foreign investors. The process of formation of Russian venture funds with the participation of national capital is proceeding slowly, but at an increasing pace. Coaching centers are being created, venture fairs are held annually, new laws are adopted by the government, programs are being developed to develop venture investment, etc. However, according to independent experts, the share of Russian capital in this business still does not exceed 1.5%.

The relevance of the topic lies in the need to improve the efficiency of the use of venture capital, especially for small businesses, which contains the potential for the development of the Russian economy, and therefore government and financial support is so necessary here.

The aim of the course work is:

Studying the theoretical foundations of venture financing;

Analysis of venture financing of innovative projects on the example of the regional venture fund of the Novosibirsk region;

This goal predetermined the solution of the following tasks:

Identify the features of the functioning of venture financing:

Analyze domestic and foreign experience in venture financing;

Analyze the current state of the venture capital market;

Assess the effectiveness of the functioning of the regional venture fund of the Novosibirsk region;

The subject of the research is venture financing of innovative projects.

The object of the research is the activity of the regional venture fund of the Novosibirsk region.

The methodological basis of the study is: Ansoff I., Blank I., Glazyev S., Grinfeld M., Kondratiev N.D., Lapusta M., Medynsky V.G., Mishin Yu.V., Porshnev A.G., Sukharev O.S., Tucker B.R., Schumpeter J.A., Schneider A., Arrow K., Yakovets Yu.V. and others.

The course work consists of an introduction, three sections, a conclusion, a list of references.

1 THEORETICAL FOUNDATIONS OF VENTURE FINANCING

1.1 The concept and essence of venture financing

Venture (English venture - a risky venture) - investment company working exclusively with innovative enterprises and projects (startups). Venture capital funds invest in high or relatively high risk securities or ventures with the expectation of extremely high returns. Typically, such investments are made in the field of the latest scientific developments and high technologies. As a rule, 70-80% of projects do not bring returns, but the profit from the remaining 20-30% pays for all losses.

The second component of the high-tech investment market is business angels. If venture funds, as a rule, prefer investments in projects with an average degree of risk (a typical investment is $ 1-5 million per project), then business angels mainly focus their business activity on investments in companies at the earliest stage development (50-300 thousand dollars per project) and, as a result, more risky investments. Often they are driven not only by monetary interest, but by something like “the desire to help a good person/project”.

A venture enterprise is a small business enterprise engaged in research and development or other science-intensive work, thanks to which risky projects are carried out. Venture is external and internal. An internal venture is organized by the authors of the idea and the venture entrepreneur. An external venture is engaged in raising funds for the implementation of risky projects through pension funds, funds from insurance companies, savings from the population, funds from the state and other investors.

Venture financing is a long-term (5-7 years) high-risk investment of private capital in the equity capital of newly created small high-tech promising companies (or well-established venture enterprises) focused on the development and production of science-intensive products, for their development and expansion, with the aim of profit from the increase in the value of invested funds.

Risky investment is usually carried out in small and medium-sized private or privatized enterprises without providing any collateral or collateral, unlike, for example, bank lending. Venture funds or companies prefer to invest in companies whose shares are not freely traded on the stock market, but are fully distributed among shareholders - individuals or legal entities. Investments are directed either to the equity capital of closed or open joint-stock companies in exchange for a share or block of shares, or are provided in the form of an investment loan, as a rule, for a medium-term term of 3 to 7 years by Western standards. In practice, the most common form of venture investment occurs, in which part of the funds is contributed to equity capital, and the other is provided in the form of an investment loan. A venture investor is generally not looking to acquire a controlling interest in a company, which allows entrepreneurs to maintain a constant desire to develop the company. And this is its fundamental difference from a “strategic partner” or simply a “partner”. The goal of a venture entrepreneur is different. He plans to make a profit only when, after 5-7 years after the investment, he manages to sell his block of shares at a price several times higher than the initial investment, that is, the venture capitalist is not interested in the long-term strengthening of the company and prefers to reinvest all the intermediate profit received business rather than paying out as dividends.

1.2 Features of the functioning of venture financing

The “tech boom” that came in the late 1990s moved the venture capital industry from the “dark corner” of the financial world that it had hitherto inhabited in a short space of time, to the bustling scene of the so-called “ new economy» . The unprofitability of most projects, which is a consequence of excess capital, has caused an unprecedented drop in investment, and only now venture economy managed to get out of the crisis. Therefore, the study of the features of the venture industry is of particular interest in the world.

One of the primary investment features of venture business is the investor's equity participation in the capital of the recipient company in a direct or indirect form, while providing new firms with numerous services. Firstly, the venture capitalist provides ongoing financial advice, which often allows the firm not only to most successfully determine the strategy of behavior in financial sector, but also improve your credit rating even with traditional banking structures. Secondly, young firms constantly seek advice on corporate and marketing strategy. Many researchers have repeatedly stated that venture capitalists are entrepreneurs first and financiers second. Many of the largest venture capital firms, such as Appax Partners, Kleiner Perkins, have outstanding management and legal teams. A start-up company is distinguished by a very low fee for management services, but having a venture entrepreneur on the board of shareholders, it will use the services of its highly qualified marketers, lawyers, and managers. Often, however, venture investors do not wait until firms need help, but initially select management personnel on their own, focusing on their experience and the experience of investors. Thirdly, the venture capitalist, being directly interested in the successful development of the company, assists in studying and obtaining more detailed information about the market and making contacts. Even the very fact of receiving an investment from a venture entrepreneur creates an image for the company: other services immediately become available to it.

Nevertheless, this feature of the venture mechanism results in the problem of the succession of the founders, caused by the desire of the investor to pursue a policy of "supporting management", which consists in changing the management of the company. The rationale of such a policy is that management is a dynamic, not a statistical concept, and at different stages of a company's existence, skills may be needed various people. In such a situation, entrepreneurs can either make a smooth transition to new roles, or adapt and retain control of the firm. But one way or another, the problem of succession is especially aggravated during the crisis period, affecting, often, even successful firms.

The next investment feature is the provision of investments for a long period (5-10 years) and investment only in the latest R&D. The uniqueness of the proposed project, its competitive advantages and market potential make it possible to occupy a new market niche. The duration of the investment is determined, first of all, by the need to develop the company to such a level as to make a profit upon exit. Most funds have, according to various estimates, from 5-7 to 10 years of existence. At the same time, most of the funds are usually invested in companies that make up the portfolio during the first 3-4 years (this period is much shorter during the boom), and the rest of the money falls on subsequent rounds of financing of portfolio companies. Such a scheme, being a stimulus for the activities of managerial personnel, can also be characterized as one of the ways of hedging venture investments.

The third investment feature of venture capital is the difference in the sources of investment capital. Venture capital is provided by the formal and informal sectors. The formal sector is dominated by venture capital funds, which are partnerships in legal form and pool the resources of a number of investors: private and public pension funds(they account for over 50% of all venture capital investments in Europe), philanthropic foundations, corporations, individuals and venture capitalists themselves - owners of venture capital funds. Typically, institutional investors allocate 2-3% of their investment portfolio to alternative assets such as venture capital. Venture funds invest raised funds in new firms that can bring high income within 5-7 years. In addition to venture funds, participants in the formal sector are special units or subsidiaries of commercial banks or non-financial industrial corporations, as well as public investment programs.

Participants in the informal sector are private venture capital investors: the so-called "business angels", as well as family members of newly created small firms. “Business angels” are wealthy individuals who provide funds to companies and are generally outstanding individuals in terms of wealth. Perhaps the broader term “private investor” is appropriate for their designation, but the name “angels” has already taken root. “Business angels” are, as a rule, professionals with business experience: some are successful entrepreneurs, others are highly paid business professionals (accountants, consultants, lawyers, etc.) and hold top positions in large companies. Informal investors have significant financial savings obtained through their own work. Many business angels invest directly in new and growing firms by being part of a syndicate of friends and business partners, and this allows the recipients of investments to receive larger funds. "Business angels" are active in the US and many European countries, including Eastern Europe. In Europe and the US, informal venture capital investment is several times larger than formal sector investment.

The formal and informal sectors play a complementary role. Investments by the informal sector are especially important in the earliest stages of the development of "start-up" firms, when these firms need "seed capital" to develop product concepts and prototypes, while the formal sector is more active in the stage of rapid growth of the firm, when funds are needed for expansion of production and sales.

One of the most important features of the "risky" business is its cyclicality. Upon closer examination, we can conclude that the cyclicality of the venture business is double. First, within a few months, he can move from periods of irrational prosperity to periods of irrational pessimism. Such fluctuations occur as investors part with significant amounts of money when the market is close to a peak, only to withdraw it back to reduce their budget deficits after another fall. At the same time, their determination to make new investments evaporates with each successive decrease in the stock market index by 10 points. A similar picture will be observed if not only investments, but also the number of companies or funds are analyzed for cyclicality. The results will be approximately the same, which once again proves the inseparability of this "irrational" cyclicality from other features of venture capital.

Secondly, apart from the generation of capital, the only an important factor The difference between the best VCs and the rest is the brand. Success in venture capital is an efficient cycle. Such cyclicity can be called "structural", since the stages of the cycle are characterized by a change in the structure of the fund.

The most talented entrepreneurs want to work with the best venture capitalists. In a mature market like America's, leading venture capitalists select the best investment deals. The strength of the venture capitalist brand, in turn, contributes to the success of the venture capital company. The brand opens doors to the best suppliers and customers. In addition, it provides access to the best lawyers, public relations specialists and investment bankers. Finally, it helps to achieve a successful "exit" as big-name venture capitalists are able to generate significant interest from public investors (in the case of an IPO).

So, venture entrepreneurship is the activity of organizing mediation between a venture investor and investment recipient firms, aimed at sharing risks between all subjects of contractual relations and making a profit through “exit”. It includes four stages: the formation of new funds, the search and selection of applicants, investment and cohabitation, "exit". The indicators prove to us the predominance of investments in the later stages of development. The main role of venture business is to ensure the successful commercialization of R&D and its stimulation.

Table 1 - Features of the functioning of venture entrepreneurship

Peculiarity	Summary
An investor's shareholding in the capital of a recipient company, either directly or indirectly, while providing numerous services to new firms.	A venture capitalist provides constant financial advice, which often allows the company not only to most successfully determine the strategy of behavior in the financial sector, but also to improve its credit rating even with traditional banking structures. Young firms are constantly seeking advice on corporate and marketing strategy. Often, however, venture investors do not wait until firms need help, but initially select management personnel on their own, focusing on their experience and the experience of investors. The venture capitalist, being directly interested in the successful development of the company, assists in studying and obtaining more detailed information about the market and making contacts.
Providing investments for a long period (5-10 years) and investing only in the latest R&D.	The uniqueness of the proposed project, its competitive advantages and market potential make it possible to occupy a new market niche. The duration of the investment is determined, first of all, by the need to develop the company to such a level as to make a profit upon exit.
Difference in sources of investment capital.	Venture capital is provided by the formal and informal sectors. The formal sector includes venture capital funds, specialty units or subsidiaries of commercial banks or non-financial industrial corporations, and public investment programs. Participants in the informal sector are private venture capital investors: the so-called "business angels", as well as family members of newly created small firms. The formal and informal sectors play a complementary role.
Cyclicity.	The cyclical nature of the venture business is twofold. First, within a few months, he can move from periods of irrational prosperity to periods of irrational pessimism. Second, aside from capital generation, the single biggest difference between the best VCs and the rest is brand. The most talented entrepreneurs want to work with the best venture capitalists. The strength of the venture capitalist brand contributes to the success of the venture capital company. The brand opens the door to the best suppliers and clients, provides access to the best lawyers, public relations specialists and investment bankers.

1.3 Analysis of domestic and foreign experience in venture financing

venture capital like alternative source private business financing originated in the US in the mid-1950s. In Europe, it appeared only in the late 70s. Before the emergence of venture capital, several sources of financing for small and medium-sized businesses were known in the world: banking capital, large corporations and companies and wealthy people, whom the Americans and the British, with the inherent ambiguity of the English language, call "business angels".

Like any extraordinary undertaking, a new business needed strong and energetic personalities and innovative approaches.

It all started in Silicon Valley (USA, California) - the cradle of modern computer science and telecommunications. In 1957, Arthur Rock, then working for an investment banking firm on Wall Street, received a letter from Eugene Kleiner, an engineer at Shokley Semiconductor Laboratories in Palo Alto. The head of the firm, William Shockley, had just won the Nobel Prize for inventing the transistor, but Eugene and several of his colleagues were not very pleased with their boss. They were looking for a firm that would be interested in the idea of producing a new type of silicon transistor. Rock showed the letter to his partner and convinced him to fly to California together to study Eugene's proposal on the spot. After their meeting, it was decided that Rock would raise $1.5 million to fund the Kleiner project. Rock approached 35 corporate investors, but none of them dared to take part in financing the proposed deal, although everyone seemed interested in his offer. Never before has it happened to create a special firm for a completely new idea, and even to finance a theoretical project. It seemed that all possibilities were exhausted and the idea was doomed. Someone advised Rock to talk to Sherman Fairchild. Sherman was an inventor himself and already had experience building new technology companies. It was he who provided the necessary $ 1.5 million. Thus, Fairchild Semiconductors was founded - the progenitor of all semiconductor companies in Silicon Valley. After that, Rock's track record included Intel and Apple Computer. By 1984, Arthur Rock's name had become synonymous with success. In fact, he seems to have been the first to use the term "venture capital" at all.

Tom Perkins, another famous venture capitalist, made his biggest risk deal of his life around the same time. Working for David Packard, one of the co-owners of today's world famous Hewlett-Packard Company, he invented an inexpensive and easy-to-use gas-pumped laser. All his savings - $ 10,000 set aside for the purchase of a house, he invested in a new company. The product was so successful that within a short period of time Perkins was able to sell the company to Spectra-Physics. After that, he also met Eugene Kleiner and devoted himself entirely to venture capital.

The first venture capital fund formed by Rock in 1961 was only $5 million, of which only $3 was invested. Corporate investors were not interested in investing in then obscure financial structures. But the results of the fund's work were stunning: Rock, having spent only 3 million dollars, after a short time returned almost 90 million to investors.

A cherished memory of venture capitalists is Cisco Systems, one of the world's leading manufacturers of network routers and telecommunications equipment. In 1987, Don Valentine of Sequoia Capital purchased a stake in Cisco for $2.5 million. A year later, the value of his stake was $3 billion.

The emergence of venture capital coincided with the rapid development of computer technology and the growing wealth of the American middle class. The modern giants of the computer business DEC, Apple Computers, Compaq, Sun Microsystems, Microsoft, Lotus, Intel managed to become what they are now largely thanks to venture capital. Moreover, the explosive growth of new industries such as personal computers and biotechnology, was made possible mainly with the participation of venture capital investments. Tom Perkins recalled: "The money we made was really a by-product ... we were driven by the desire to create successful companies that are on the cutting edge, developing amazing new technologies that were supposed to turn the world."

To date, the United States is the undisputed leader in the field of venture business. By the end of the 20th century, the United States accounted for half of all venture capital investments in the world.

Venture business is today a segment (and not the largest) of the industry of direct investment in equity capital, but its importance can hardly be overestimated, because. risk capital is practically the only source of financial support for small innovative enterprises at the earliest stages of existence - from the idea to the release and consolidation of their products on the market. That is why venture capital has become a crystallization center for the formation of a powerful modern private equity industry in the United States.

Like any other, the venture business has experienced ups and downs in its development, but the overall positive trend in its development confirms the effectiveness of its combination of modern financial and management mechanisms, reliance on the potential of high technologies and the energy of entrepreneurship.

The undoubted success of the venture capital business in the 1960s and its dynamic development attracted significant interest from financial and managerial circles and required the creation of its infrastructure and the improvement of relationships in the private equity industry as a whole. Let us briefly note the main events.

In 1973, the National Venture Capital Association (NVCA) was formed to create a broad understanding of the importance of venture capital to the viability of the US economy and to represent the interests of venture capitalists and emerging companies in society. Currently, the association unites 330 organizations managing venture capital of about $ 70 billion. The affiliated structure of the association - American Entrepreneurs for Economic Growth (AEEG) - is a nationwide organization that includes about 10 thousand developing enterprises, employing over a million Americans.

Given that the preferred "exit" strategy for venture capital companies is public offering, stock dealers have responded by creating an automatic quotation system for the National Association of Securities Dealers (NASDAQ), the second (after the New York) US Stock Exchange, specializing in initial placement shares of growing companies.

Due to the high profitability of shares of venture capital companies, such companies become an object of increased interest for investors at the stage of their preparation for public offering. At the turn of the 1970s and 1980s, specialized funds began to form (the so-called direct equity funds) aimed at acquiring blocks of shares in such companies. Buyout funds carry out (or finance) the acquisition of a controlling interest in obtaining full control over the use of the company's assets and the conduct of its business operations. Mezzanine funds specialize in investment financing companies just before entering the stock market. At present, in the US, the total capital of direct investment funds is 4-5 times higher than the capital of venture funds.

Thus, at present, there is a two-stage investment scheme for a promising company: at the initial stages and during the period of strengthening in the market, it is supported by venture capital, after which the capital of direct investment funds is included. A characteristic feature of the US venture business, which largely determines the dynamics and sustainability of its development, has been and still is the focus on investing in innovative enterprises that implement Hi-tech in various industrial sectors. The US venture business was formed as a branch of entrepreneurship during the period of rapid development of microelectronics and computer technologies and gave a powerful impetus to the successful development of these areas. The world leaders in the computer industry - Microsoft, Intel, Apple Computers, Compaq - have taken their current position largely due to venture capital investments in the early stages of their development.

Firm positions in the list of priorities are also occupied by telecommunications technologies, biotechnologies, medicine and health care, consumer goods and services.

The beginning of the history of the development of venture funds in Russia was laid in April 1993 in Tokyo, where the representatives of the G8 agreed to allocate funds to Russia for the development of venture projects under the auspices of the EBRD. The total amount, which amounted to about $ 500 million, was supposed to be divided between venture funds controlled by the EBRD and funds organized in Russia according to regional principle(the so-called "regional venture funds"), the first fund was established in 1994. Practice shows that EBRD funds focus on investing in medium-sized companies, which are mainly at the stage of expansion.

It is rather difficult to determine the total number of venture capital funds currently present in Russia due to the fact that not all of them are active. It is believed that the number of existing funds is from 40 to 80, with no more than 20 actively operating of them. The total volume of funds raised by the funds is from 3 to 5 billion US dollars (for comparison, in management of European funds, was estimated at 360 billion US dollars, which amounted to about 3% of EU GDP).

More than a quarter of the VFs were created open or semi-open, such as the EBRD Regional Funds or the Russian-American Investment Fund (fund size - 440 million USD, founded in 1995 with funds provided by the US Congress). Other funds, such as PaineWebber Mitchell Hutchins (now Russia Partners), SUN Group, AIG, ING Barings Group, Framlington and Daiwa, have private sponsors. These funds invest in a wide range of sectors of the Russian economy, including mining and processing natural resources, forestry, pulp and paper, communications, media, high technology, consumer goods, pharmaceuticals, transport, distribution, real estate and services. According to the Ministry of Industry and Science of the Russian Federation, the share of high-tech projects that are objects of investment is only about 5% (about 30% abroad).

During 2005, according to Expert magazine, 62-65 million dollars of venture investments were realized (about 16 investment transactions). According to Albina Nikkonen, executive director of RAWI, for the period 1995-2005. venture funds in Russia have invested about $2.5 billion in total. Some of the funds operating in Russia do not seek to disclose data about their projects, while the other part, on the contrary, is quite open - however, the latter does not at all mean increased flexibility or a lowered bar for such funds to potential clients.

2 ANALYSIS OF VENTURE FINANCING OF INNOVATIVE PROJECTS (ON THE EXAMPLE OF THE REGIONAL VENTURE FUND OF THE NOVOSIBIRSK REGION)

2.1 Analysis of the current state of the venture financing market in Russia

Features of the functioning of individual venture funds are directly dependent on how developed venture financing is in the country. In Russia, unlike many European countries, the system of the venture business industry has not yet been formed, which negatively affects the development of its economy. But the venture business should take its place with us, especially considering that many venture funds from England, France, Germany and other countries are ready to become partners in the creation of new small high-tech venture capital companies in Russia. And there is hope that then, following Western investors, Russian capitals.

The authorized capital in the majority of Russian companies is a symbolic value and its repeated increase is associated with significant costs. Because of this, many investors are faced with the proposal to distribute the volume of investments into a relatively small amount of own investments, corresponding to their share in the capital of the new company, and the main share of financing, formalized as a long-term loan. Such an approach may not be consistent with the principles investment policy many financial institutions and negotiations can be interrupted already at an early stage.

Despite the technical sophistication of Russian projects, there is no clear positioning of products and trademark companies on the market, qualitative comparative analysis with competitors; in many cases, there is an unresolved issue of ownership and patent protection of developments.

Accordingly, the features of the functioning of venture funds are:

Venture investors are forced to carry a much larger scope of functions related primarily to setting up and developing business processes in the invested company;

In many projects, the issue of developing incentives for the investor is not given due attention. Basically, the emphasis is on the technical merits of products.

The circle of possible venture investors at the moment and in the near future will be limited. For many investors, most Russian projects do not comply with the principles of investment policy, both at the stage of "entering" a new company, and when implementing an "exit" from the business.

The projects with export potential will have the greatest opportunities in attracting funds.

In some cases, companies implementing projects prefer to establish partnerships with foreign venture funds. Accordingly, Russian venture funds lose the opportunity to invest part of the projects.

Insufficient training of the management of companies - applicants. For a venture investor, the personal and professional qualities of company managers are one of the main criteria for selecting an investment object, because qualified management is an effective indicator of investor risk reduction.

The combination of risks today makes venture investors prefer to invest in companies that are at the stage of "explosive expansion", although a venture investor may enter a business at an earlier stage of its development. This situation makes it difficult for companies - applicants to enter the market, raising the question of sources of funds for development in the early stages.

Another feature is the lack of legislation on the activities of venture funds in Russia, so they are forced to determine the principles of their activities themselves. It is necessary that a more favorable investment climate be created throughout the country, which would not interfere with the development of free enterprise and the self-regulation of industry in a free market.

However, some steps are already being taken to remedy the situation. By order of the Government of the Russian Federation of March 10, 2000, the first "fund of funds" was created - the Venture Innovation Fund (VIF), whose task is to help create regional / sectoral funds with Russian and / or Western capital.

The peculiarities of venture funds in Russia also include the fact that the first 11 venture funds were created in Russia from 1994 to 1996. in partnership between the European Bank for Reconstruction and Development and donor countries (France, Germany, Italy, etc.). And in 1997, the Russian Venture Investment Association was established, the main goal of which is to promote the formation and development of the venture capital industry in Russia. Already in 1998, more than 40 venture funds were operating in Russia, represented by both Russian and foreign capital. In 1993 European bank reconstruction and development began a development program regional funds venture capital (RVF) on the territory of the Russian Federation. To date, such funds have been created in eleven regions of Russia: Smolensk, Ural, St. Petersburg, Far East and Eastern Siberia, Lower Volga, Northwestern, Southern, Central, Western, Western Siberia, Central Black Earth.

At the beginning of August 2010, there are 22 regional venture funds for investments in small enterprises in the scientific and technical sphere in Russia, created in 2006-2010 by the Ministry of Economic Development of the Russian Federation together with regional administrations with a total volume of 8.624 billion rubles. RVC representatives are members of the Boards of Trustees of these funds.

Starting from January 2010, all projects that are applicants for investment by regional venture funds for investments in small enterprises in the scientific and technical field, in without fail are sent for examination to RVC OJSC. The decision to involve RVC in additional expertise of projects of regional venture funds was made by the Ministry of Economic Development of Russia at the end of 2009 in order to professionalize control over the procedures by which the management companies of regional funds select projects for investment.

The structure of the assets of the funds is distributed as follows: 25% - federal budget funds, 25% regional budget funds and 50% - investments of private investors.

Table 2 - Regional venture funds for investments in small enterprises in the scientific and technical field in Russia

Fund name	Management Company	fund size,	Year of creation
Moscow cities		800	2006
Moscow cities (second)	VTB Asset Management	800	2008
Voronezh region	Savings and investments	280	2009
Volgograd region	UK I-Man Capital	280	2009
Kaluga region	Savings and investments	280	2010
Krasnodar Territory	UK I-Man Capital	800	2009
Krasnoyarsk Territory	Troika Dialog	120	2006
Moscow region	Troika Dialog	284	2007
Nizhny Novgorod region	VTB Asset Management	280	2007
Novosibirsk region	UK I-Man Capital	400	2009
Perm Territory	Alliance ROSNO Asset Management	200	2006
Republic of Bashkortostan	Savings and investments	400	2009
Republic of Mordovia	Alliance ROSNO Asset Management	280	2007
Republic of Tatarstan	Troika Dialog	800	2006
Republic of Tatarstan (high tech)	AK Bars Capital	300	2007
Samara region	Investment Management	280	2009
Petersburg	VTB Asset Management	600	2007
Saratov region	VTB Asset Management	280	2007
Sverdlovsk region	Ermak	280	2007
Tomsk region	Monomakh	120	2006
Chelyabinsk region	Savings and investments	480	2009
Chuvash Republic	NIK Development	280	2009
Total:		8 624

2.2 Comparative analysis of the activities of the regional venture funds of the Ministry of Economic Development and the venture funds of RVC

Of the more than two dozen Regional Venture Funds (RVFs), the Ministry of Economic Development in 2009 was active in more than half. At the same time, the activities of two funds were suspended in 2009.

A number of transactions carried out by the funds were additional rounds of investment. Traditionally, the vast majority of investments have been in venture stages.

By the end of 2009, the capitalization of the existing RVFs of the Ministry of Economic Development reached approximately 280 million dollars. The total volume of investments for the period 2007–2009 amounted to about 75–80 million dollars. The size of investments fluctuates in the range of 0.5–5 million dollars.

The MED RVF is dominated by investment in the ICT sector. Investments in other industries, such as electronics, medicine, energy, industrial equipment, chemical materials are distributed fairly evenly.

Comparison of the sectoral structure of transactions of the MER and RVC funds in 2009 (Table 3) reveals some differences in investment preferences - in investment portfolio RVC funds for 2009, the ICT sector is only in third place, while the medicine/health and energy industries are in the lead, and the electronics industry is in last place in terms of preferences .

Table 3 - Industry structure transactions of MER and RVC funds in 2009

Industry	Regional funds of the Ministry of Economic Development, %	RVC funds, %
Ecology	0	0
Medicine/health	6,55	43,16
Electronics	9,00	12,06
Light industry	0	0
Chemical materials	6,00	0
Transport	0	0
Agriculture	4,70	0
Biotechnology	1,35	0
Industrial equipment	7,00	0
Energy	9,00	30,82
Construction	4,70	0
Computers	30,50	9,65
Telecommunications	21,20	4,31
Financial services	0	0
Consumer market	0	0
Other	0	0
Total:	100,00	100,00

Figure 1 - Division of investments of the Ministry of Economic Development and Trade and RVC by industry, 2009

The regional preferences of the MER and RVC funds are also different (taking into account the greater freedom in choosing the geography of investments by RVC funds). The regional distribution of investments by the MED funds actually reflects the geography of the latter: the largest volumes of investments were recorded in the Central Federal District and the Volga Federal District.

In the investment preferences of RVC funds, the Central Federal District leads by a wide margin, followed by the North-Western Federal District and the Urals Federal District (Table 4).

In 2009, RVC funds invested in companies that were in the early stages of their development, while MER funds invested primarily at venture stages (about 66% of total investments in 2009).

Table 4 - Regional preferences of MER and RVC funds in 2009

Figure 2 - Distribution of investments of the MED and RVC by federal districts, 2009

2.3 Evaluation of the effectiveness of the functioning of regional venture funds (on the example of the RVF of the Novosibirsk Region)

The system of regional venture funds began to be created on the initiative of the Ministry of Economic Development of Russia in 2006 on the basis of a public-private partnership. Within this system federal budget provided a subsidy to the region on a competitive basis, the region was obliged to reserve in its budget a similar amount of funds for the formation of a non-profit organization - the Fund for Assistance in the Development of Venture Investments in Small Enterprises in the Scientific and Technical Sphere of a Subject of the Russian Federation (hereinafter referred to as NPOs).

Currently, there are 22 regional venture funds for investments in small enterprises in the scientific and technical sphere in Russia with a total volume of 8.624 billion rubles. Taking into account the need to improve the efficiency of the work of regional funds, the Ministry of Economic Development of Russia decided to include RVC OJSC in the operation of the system in order to ensure high-quality expertise of innovative projects, attract the expert base of RVC OJSC, improve the quality of work of the management companies of regional funds. As part of organizing this work, RVC representatives were sent to the Boards of Trustees of NCOs.

The total volume of investments of regional venture funds in innovative projects reached 2.8 billion rubles. (Q2 2010).

The shares of priority areas and the volume of invested funds in the structure of investments of regional venture funds are shown in Table 3.

Table 5 – Investment structure of regional venture funds (Q2 2010)

Priority areas	Share of investment	Amount of invested funds
Information technology, development of global public information networks	52,64%	RUB 1,472,314 thousand
Efficiency of production, transportation and use of energy, development and introduction to the market of new types of fuel	7,18%	RUB 200,817 thousand
Production of certain types of medical equipment, cutting-edge diagnostic tools, medicines for the treatment of viral, cardiovascular, oncological and neurological diseases	0,85%	RUB 23,873 thousand
Own ground and space infrastructure for the transmission of all types of information	2,10%	RUB 58,784 thousand
Other destinations	37,22%	RUB 1,041,134 thousand

CJSC Management Company I-Man Capital - Management Company venture funds in Russia.

The main task of the company is high yield from investments in shares of venture funds under its management and minimization of risks in the investment process.

The company currently manages:

Regional Venture Fund of the Volgograd Region;

Regional Venture Fund of the Krasnodar Territory;

Regional Venture Fund of the Novosibirsk Region;

Private venture fund NIKOR I;

Private venture fund NIKOR II.

A professional team of managers with significant experience in the search, development and management of venture capital and direct investment projects in Russia and abroad ensures the highest possible quality of investor asset management.

The basis of the company's strategy is to invest in projects with a significant technological gap and innovative potential, which allows achieving the maximum competitive advantage, especially in the early stages of project development.

Priority areas for investment by funds managed by I-Man Capital:

Biotechnology, pharmaceuticals and medical technology

New materials and nanotechnologies;

Alternative energy and power engineering;

Information and telecommunication technologies.

In the indicated areas:

A system for searching and selecting projects has been formed;

Examination experience accumulated;

Project managers have their own experience in project development.

These industries are interesting for venture investments in terms of the scientific and technological backlog created in them in previous decades, the state strategic interest in their development, as well as the processes of consolidation and absorption of some players by others for the next 5-7 years, which makes it easier for the Fund to exit from projects.

The procedure for the Fund to enter projects:

Preliminary selection of projects based on project proposals of applicant companies or innovative developers;

Scientific and technological expertise of projects that have passed the preliminary selection;

Market assessment;

Evaluation of exit prospects;

Negotiating the preliminary conditions for investing in a project/company (Term Sheet);

Studying the business of the company/project ( due diligence), including a comprehensive audit legal entity, patent examination, assessment of market attractiveness, determination of expected financial indicators and project risk analysis;

Deal structuring;

Preparation and approval of a long-term business plan (for the period the fund enters an innovative project, but not more than 6 years);

Protection of the project at the Investment Committee of the Fund;

Approval of the project by the Supervisory Board of the Fund;

Signing an investment agreement and carrying out the necessary organizational and legal procedures (introducing changes in the composition of participants in a legal entity, in the composition of the Board of Directors, if necessary, in the executive bodies, etc.);

Investment.

Venture funds are created for the purpose of:

Providing investments to small innovative enterprises of early stages of development (seed, start up, early stage), implementing commercially attractive innovative projects;

Receiving high income from investment investments when selling the Fund's share and leaving the invested companies;

Promoting the development of small innovative enterprises in high-tech and knowledge-intensive industries.

Table 6 - Comparative analysis of the development of venture funds in the Novosibirsk Region and the Krasnodar Territory (on the example of CJSC Management Company I-Man Capital)

Not a single innovative project in the Novosibirsk region was financed by the Regional Venture Fund.

The efficiency of the RVF of the Novosibirsk Region = 0.

3 DEVELOPMENT OF RECOMMENDATIONS TO INCREASE THE EFFICIENCY OF VENTURE FINANCING (BY THE EXAMPLE OF THE RHF OF THE NOVOSIBIRSK REGION)

3.1 Organizational and legal aspects of the functioning and development of venture financing

Consider the management structure in a typical venture fund:

The partner is a “venture capitalist”, manages the process of raising money, prepares decisions on transactions, and manages companies from the portfolio. Participates in profit.

The managing director is a hired employee who does not share in the profits. Engaged in the preparation of documents for transactions and interaction with companies.

Analyst - a hired employee, also does not participate in profits. He is engaged in analytics of industries and companies.

One of important points in the process of organizing a venture fund is the organizational and legal structure of the fund.

In Russia today there are two forms suitable for registering venture funds - this is a simple partnership agreement and a closed-end investment fund of especially risky (venture) investments. Both forms do not form a legal entity and allow investors to avoid double taxation. The form of venture closed mutual funds has appeared in Russia recently, and by now there are venture funds of both types.

Today in Russia the mechanism is of great importance state regulation processes of development of the high-tech complex and the venture industry as a whole.

The tools of this mechanism can be grouped into three groups:

a) normative - legal group. Intellectual property, the system of benefits, including tax, labor motivation, the status of a territory with a high concentration of scientific and technical potential, the division of powers between the federal center and the subjects of the Russian Federation.

b) economic group. State guarantees, government orders, contracts, insurance and collateral, improvement tax system in favor of priority areas, improvement of the planning and forecasting apparatus in the field of scientific and technological progress, effective use of financial and credit levers, customs benefits.

c) management team. Tools that contribute to the improvement of public property management in different types in the interests of developing a high-tech complex, enhancing innovation in the country. Here we can note the policy of protectionism, the promotion of products to foreign markets, the training and retraining of managerial personnel.

Until 1999 in Russian legislation and regulatory framework there was no mention of "venture" activities. For the first time this term was mentioned in the official document "Main Directions for the Development of Extrabudgetary Financing of High-Risk Projects (Venture Investment System) in the Scientific and Technical Sphere for 2000-2005" in December 1999. Highlights of this program:

a) normative - the adoption of regulatory legal acts responsible for effective development venture investment industry in the scientific and technical sphere.

b) economic - determination of financial resources for venture investment. A contribution was made to the Venture Investment Fund from the funds Russian fund technological development of the Ministry of Science. Further funds were planned to be attracted from private investors.

c) organizational - the creation of federal, regional, industry venture investment institutions and other elements of venture investment.

In 2002, a new project was developed: "The concept of the development of the venture industry in Russia ( state system stimulating venture investments). This project clarified the previously set goals, namely:

Creation of technology transfer agencies at scientific institutions, training of personnel for venture investment, formation of a network of consulting structures such as Western "coaching centers".

Creation of venture funds with the participation of the state, adjustment of legislation.

Ensuring liquidity of venture investments. (Creating a network of exchanges for high-tech companies, holding venture fairs).

Increasing prestige entrepreneurial activity in the field of small and medium technology business.

The next step towards the creation of a legal framework for venture capital investment was the Decree of the Federal Commission for the Securities Market of Russia dated August 14, 2002 N31/ps "Regulations on the composition and structure of assets of joint-stock investment funds and assets of mutual investment funds”. In this resolution, "venture" (particularly risky) funds were classified as "closed-end mutual investment funds" (ZPIF).

3.2 Forecast of the development of venture capital financing (on the example of the RFF of the Novosibirsk Region)

The state is starting to take steps to improve market conditions for venture financing. This is facilitated by the implementation of the concept of creating technoparks in Russia as a commercially profitable symbiosis of capital and scientific potential (in the Novosibirsk region, the construction and development of the Akademgorodok technopark is a striking example). The state takes part in the insurance of venture risks in strategically important scientific and technological areas. An innovative infrastructure is being created. These are the Center for Technological Support of the Academgorodok Technopark, this is the Center for the Commercialization of Laser and Fiber Optic Technologies, these are support programs, these are platforms - exhibitions, fairs, seminars where you can establish a dialogue with government officials and large industrial companies that are potentially customers.

An important role in the development of venture financing in the Novosibirsk region is played by the assistance of the Novosibirsk Regional Fund for Support of Science and Innovation. In the Novosibirsk region, not one, not two - but 32 projects, fully packaged for a venture investor. And here we must pay tribute to the Science Support Fund - it was its specialists who took on the lion's share of the work on organizing this "packaging". Since the year before last, when the regional venture fund had not even been formed yet, the selection and preparation of companies began. Once a week, a working group, with the participation of the leaders of well-known, successful, innovative firms that have long established themselves in the market, gathered and considered the proposed projects. Moreover, they did not take those that are on the surface, by ear, are noted in all catalogs, - explains Boris Ivlev, director of the Novosibirsk Regional Fund for the Support of Science and Innovation. – In search of interesting, non-banal, non-hackneyed developments, we turned to universities and academic institutions, came to laboratories, met with research teams.

Moreover, the fund took on most of the costs of creating business plans. After all, it is a well-prepared business plan that is the main "weapon" of a company in the fight for venture capital investments. Without such a document, not a single venture capitalist will do business with you.

But a well-written, detailed, attractive business plan for an investor is not a cheap pleasure. And when the regional administration itself finds a suitable consulting firm and assumes 70 percent of the payment for its services, this is a great success and great support for a start-up company.

It is not surprising that the Novosibirsk region has shown such a strong readiness for venture capital investment. In other regions, where detailed venture funds have been created, and larger ones than ours, the authorities have let this process take its course. The position, in general, is clear: if companies need venture capital investments, let them seek them themselves. It is enough that the state allocates money for this. As experience has shown, far from enough.

In order to eliminate "venture illiteracy" in Novosibirsk, seminars, conferences and coaching sessions are regularly held for innovators with the involvement of specialists from RVCA and RVC. Experts tell you how to form a project team, how to organize negotiations with an investor, how to present a business plan, and so on and so forth. And the Siberian Venture Fair turned out to be a very successful platform for training participants in the innovative business. In the end, besides master classes, trainings and seminars, the best teacher is experience. And at the venture fair, you can try your hand at attracting investments.

At the end of 2009, the Ministry of Economic Development of Russia decided to involve RVC in additional expertise of projects of regional venture funds in order to professionalize control over the procedures by which the management companies of regional funds select projects for investment. Starting from January 2010, all projects that are applicants for investment by regional venture funds for investments in small enterprises in the scientific and technical field are mandatory sent for examination to RVC OJSC. RVC members are also members of the Board of Trustees of regional venture funds.

Given the nature of Novosibirsk, which is distinguished by a powerful industrial sector, a high concentration of fundamental science, a wide base vocational education, high geopolitical and transport and logistics potential, a significant development of telecommunications systems, saturation of the financial and credit infrastructure, as well as a large public activity of the population and the presence of a significant number of small and medium-sized business structures, we can confidently assert that in the conditions of a state economic policy focused first of all, on the raw material sector, where the city, like the region, has a very modest place, the main direction of the sustainable development of the metropolis, first of all, is the formation and expansion of high-tech production and innovative entrepreneurship. Novosibirsk is one of the few domestic cities capable of forming what is today called a “knowledge-based economy”, in which, in a single cycle, the creation of knowledge itself and the transformation of knowledge into efficient production are carried out. This kind of economy is intensively developing in the advanced countries of the world, bringing them enormous profits. The basis for financing new products, new technologies and new industries, that is, the economy based on knowledge, is the so-called venture capital.

Although it is obvious that the Novosibirsk production system will not develop steadily without the formation of a venture business, its deployment in the city is still difficult.

3.3 Development of recommendations for improving the efficiency of venture financing (on the example of the Russian Navy of the Novosibirsk Region)

For the formation and development of the venture financing system in Novosibirsk, it is advisable to have a special program that takes into account the state and characteristics of this market area.

The state needs to solve the problem of "long" money, because high cost borrowed money makes it difficult to implement long-term (over seven years) investment projects, to make changes to the current limitations of the stock market (liquidity, high overhead costs in the implementation of fund activities, difficulties in listing closed venture mutual funds). Modernize the outdated Russian customs and currency regulation, which is restrictive in nature and does not contribute at all to the promotion of Russian innovative products on the world market.

In our country, the share of high technologies accounts for 0.3-0.5 percent of GDP, and in a number of developed countries it reaches 70%. One of the solutions to this problem is the creation of an expert community of entrepreneurs, investors, scientists and engineers who create and develop innovative companies, the so-called Advisory Council. One of the most important goals of the Council's creation is to establish business relations between the leading experts of the Russian venture capital market. So far, the community of venture technology entrepreneurs in Russia is not only small, but also very fragmented. Through direct contacts between members of the Council with each other during the discussions and consultations that will be held on the main issues of market development, relations between all participants in the innovation ecosystem will also develop.

The members of the Advisory Board should be leading, recognized experts in the market, and each of them has its own global network of business contacts. Cooperation within the Council will inevitably lead to the establishment of links between networks, which include professionals from a wide range of fields. And this catalyzes the development of new investment projects in the venture capital market.

But measures should be taken not only by the state, but also by the developers themselves. For more successful cooperation with venture funds, it is necessary to form teams that will include not only scientists, but also marketers, managers, economists, financiers and other specialists who will be involved in patent registration, marketing research, business plan development, search for investors, etc. .

In Novosibirsk, with a large number of innovative projects, for such a powerful scientific and educational complex, it is necessary to increase the size of the RVF from 400 million (which are available in the regional venture fund) to about two billion. Then the innovation process will really move forward, then we can expect real results, tangible changes in the economy.

CONCLUSION

Venture finance is a long-term (5-7 years) high-risk investment of private capital in the equity capital of newly created small high-tech promising companies (or well-established venture enterprises) focused on the development and production of science-intensive products for their development and expansion, in order to profit from the increase in the value of invested funds.

Venture capital financing in Russia is now at the initial stage of development and it is impossible not to note a number of features, some of which create favorable conditions for the development of venture business, while others significantly constrain and limit it. The main positive factors include the following:

The presence of a significant number of projects with significant export potential, which greatly facilitates the task of attracting the necessary funds.

Factors hindering the development of venture business include the following: in conditions of general economic instability Russian companies are forced to maintain competitiveness through fundamentally different schemes of doing business and organizing financial flows from Western ones. Because of this, it is often not possible to present the invested company as a full-fledged object for investment, which entails the need to either pay too high a “price” for investments, or is the reason for the failure of negotiations with the investor.

Despite the technical sophistication of Russian projects, there is no clear positioning of the company's products and brand on the market, no qualitative comparative analysis with competitors; in many cases, there is an unresolved issue of ownership and patent protection of developments.

In the process of preparing this course work, it was studied a large number of sources of information selected in accordance with the goals and objectives of the study. Most of the array of information is the materials of the periodical press of the federal and regional, business and socio-political media for the period from 2005-2010. The sources present the opinions of experts, politicians and heads of venture funds.

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Essence and problems of venture financing of investment projects. Venture financing of an investment project