The importance of venture capital in innovative investment projects

Abstract

Innovation makes it possible to produce more products with less materials and resources, which in turn leads to economic growth. The main problem of financing innovative projects is the high risk of returns and long payback. Most of these projects do not have enough guarantee funds, their resources are limited, and only their own ideas and technologies are the backbone. Due to the high risk of innovative projects, it is necessary to use venture capital to finance them.