FINANCING INNOVATION WITH A FOCUS ON VENTURE CAPITAL

KLAUDIA ŠOLTÉSOVÁ

https://doi.org/10.53465/EDAMBA.2021.9788022549301.507-517

 

Abstract: Innovation, research and development are directly linked to the overall global competitiveness of countries and support overall economic growth. Innovation is primarily associated with the improvement of certain areas, products or services. It is based on improving the framework conditions and access to research and innovation funding to ensure that innovative ideas lead to the creation of products and services that deliver growth and jobs in each country. Entrepreneurs decide on the possibilities for obtaining additional finances on the basis of corporate goals, company development and strategic intentions. At present, companies do not have to rely solely on their own sources of financing or bank loans, as the market also offers alternative sources of financing. Companies can benefit from the help of investors who, in addition to providing finance, also offer important experience and advice in the business area. These sources also include venture capital, which is particularly important for small and medium-sized companies with growth potential, which are mostly exposed to high risk and have a low creditworthiness to obtain additional resources. EU funds and programs contribute to solving structural problems and to supporting growth and competitiveness in Slovakia. The aim of this paper is to provide an overview of the various sources of financing innovation in the company with a focus on the use of venture capital in Slovakia and other EU countries. The paper also identifies the main barriers that limit the innovative activity of companies.

Keywords: financing innovations, venture capital, V4 countries

JEL classification: G15, G24

Fulltext: PDF

Online publication date: 12 May 2022

 

To cite this article (APA style): 

Šoltésová, K. (2022). Financing Innovation with a Focus on Venture Capital. Proceedings from the EDAMBA 2021 conference, 507 – 517. https://doi.org/10.53465/EDAMBA.2021.9788022549301.507-517