The venture capital market in Kazakhstan has been developing since the early 2000s. With state support, venture funds and innovation infrastructure (science parks, accelerators, etc.) were formed. The results of these efforts, however, were modest. Rapid growth of the Kazakhstan venture sector since late 2010s was spurred by the development of the Internet markets. Despite some success stories, the sector is at an early stage of its growth. The potential for commercialization is low, emerging technologies are absent, and financial instruments are not developed. The main problem is not the effectiveness of national policy, but the framework limitations of Kazakhstan`s economy. These are insufficient R&D; dominance of extractive industries; small domestic market and weak potential for regional scaling. Global players are more interested in supporting individual projects rather than in developing Kazakhstan`s venture market. Outcomes of 2022 create new challenges and opportunities for Kazakhstan. However, without correction of national policy, the venture sector will still face limits to growth – even in the most promising Internet markets.
Раздел "Международные экономические отношения" ; Успешный мировой опыт определяет роль государства и государственных программ поддержки развития венчурного предпринимательства в качестве катализатора запуска венчурных процессов в стране. Программы прямых государственных инвестиций в основном характерны для развитых стран. Развивающиеся страны добивались успеха благодаря фондовым механизмам. В статье раскрывается сущность фонда фондов и его роль в развитии венчурной индустрии. Приводятся примеры государственной поддержки венчурного бизнеса в разных странах: Финляндии, Израиле, США, России, Казахстане. = Successful world experience defines the role of the state and government support programs of venture business development as the start catalyst of venture processes in the country. Programs of direct state investments basically are typical of developed countries. Developing countries achieved success thanks to fund mechanisms. The article reveals the essence of the fund of funds and its role in the development of the venture industry. Examples are given of the state support of venture business in different countries: Finland, Israel, the USA, Russia, Kazakhstan.
Private equity/venture capital was introduced in Ghana in 1991. In conjunction with this entry of a new asset class, the Government of Ghana (GoG) created a legal/ regulatory framework for VC funds in the early 1990s, regulated by the Bank of Ghana. In late 1991, USAID sponsored a venture capital fund in Ghana, along with the Commonwealth Development Corporation (CDC). The initiative set up two companies, a non-bank finance company to hold the funds, the Ghana Venture Capital Fund (GVCF), and a separate management company, Venture Fund Management Company (VFMC), to make the investments. This initiative created the impetus for legal/regulatory framework for venture capital funds which was defined by the Financial Institutions (Non- Banking) Law of 1993, and "Draft Operating Guidelines for Venture Capital Funding Companies" which were published by the Bank of Ghana in 1995. Ghana is generally touted as an attractive investment destination on the continent because of its stable government and relatively strong business environment. However, there are also some market impediments specific to private equity/venture capital in Ghana. The country's strong business environment is reflected in its ranking of 70th out of 189 countries in the 2015 World Bank Doing Business Study, above both Kenya (136) and Nigeria (170). However, Treasury bill rates in Ghana have been around 25 percent (91-day and 182-day), making it harder to justify investment in riskier and more illiquid alternative assets by domestic institutional investors. There has been significant depreciation (approximately 75 percent) in the Ghana cedi since the currency was redenominated in 2007 after the significant loss of value of the Second Cedi, which was advanced in 1967. This depreciation in the Ghana cedi has made business fundamentals unsupportive for investment. The objective of this study is to assess the private equity/venture capital (PE/VC) ecosystem in Ghana and to provide recommendations aimed at fostering a robust private equity and venture capital environment that can provide risk financing for competitive small and medium enterprises (SMEs). PE/VC firms are investment managers that mobilize fixed pools of capital to invest in a variety of companies, often across many industries. These firms typically comb the market for high potential investment opportunities through their network of intermediaries, and by developing business linkages and competencies in specific sectors. Apart from providing financing, PE/VC funds tend to take a "capital plus" approach, in that they help the companies in their portfolios to enhance management capacity, improve market focus and presence, strengthen governance, and manage growth. Although PE investment styles may vary considerably, many firms seek financial returns by supporting and financing the growth of the companies in their portfolios. As such, these firms are widely linked to job creation.
We investigate the effectiveness of government backed venture capital schemes (GVCs) in funding early stage entrepreneurial ventures. Addressing fundamental issues of additionality, crowding out, economic impact and sustainability, we discover that UK GVC-backed schemes have evolved to provide more effective, targeted, funding for high growth potential firms. Combining primary data from a number of sources, we discover positive impacts of increases in turnover and employment in funded ventures, along with effective targeting of specific funding gaps. Significant issues remain, including a lack of liquidity in follow-on funding and a requirement for longer time horizon in funds, as firms typically fall behind in development schedules. There is, therefore, a need for greater flexibility in GVC-backed funds. Policy designers should be cognisant of the changing external financing ecosystem when designing co-investment schemes.
The article is devoted to outlining the main problems of the venture financing mechanism in Ukraine. The purpose of the article is to identify problematic aspects of the functioning of venture financing in Ukraine and identify key measures to eliminate them. The research methods used in the process of writing the article involve the use of general scientific and empirical techniques of economics, based on a systematic approach. The article clarifies the essence and role of venture capital as a source of funding for innovation processes. It is stated that venture capital is an effective form of financing and supporting innovation activities of enterprises. However, despite the effectiveness of this form of financing, there are a number of problems that hinder the effective functioning of the venture financing mechanism in Ukraine. Among them are the following: political and economic crisis, imperfect legal framework, underdeveloped innovation infrastructure, lack of available sources of funding, low business culture, insufficient level of venture education, lack of innovation and investment activity in many domestic enterprises. It is noted that the basis of the organization of venture financing is to highlight the phases of the life cycle of the enterprise or product. At each stage of the innovation strategy implementation, it is necessary to develop its own, special strategy, which will be aimed at reducing risk and finding appropriate effective sources of funding. Existing problems should be solved by implementing the following main measures: active government intervention in the development of the venture market; development of targeted state programs to support and stimulate the activities of business angels; creation of a legal basis for venture activity; providing financial support for targeted grants, as well as tax benefits for business angels; reduction of interest rates in banks for the development of small innovative enterprises; creation of regional networks of business angels and expansion of the ...
The study reveals the significance of venture business as a key factor influencing the economic development of Russia. In the context of current economic crisis, venture funds are an important institution bringing finance to startup innovation-based intensive companies. The dynamics of domestic venture investments is analyzed. The development problems and prospects of Russian venture capital market are considered. The measures contributing to the improvement of the business venture are proposed. It is concluded that venture investment market support in Russia is the focal point of the state innovation policy and an indispensable factor in innovative intensification and improving the competitiveness of the domestic industry. Russia will be able to achieve its innovative potential, reduce the technology gap, transit to the innovative economy if professional business industry and state work together to build a national venture investment system.
