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Venture Financing of the Subjects of Agrarian Business

Author

Listed:
  • Nataliya Trusova

    (Tavria State Agrotechnological University, Melitopol, Ukraine)

  • Nataliya Tanklevska

    (Kherson State Agrarian University, Kherson, Ukraine)

  • Oleksandr Prystemskyi

    (Kherson State Agrarian University, Kherson, Ukraine)

Abstract

The article is devoted to the analysis of problems and prospects of development of Ukrainian venture industry in agriculture, taking into account the comprehensive methodological approach to ensuring the profitability of financial assets of subjects in the distribution of investment resources of venture funds. The axiom of value and the universal method of discrete venture financing in agriculture were singled out. The basis of the favorable institutional infrastructure of venture funds for regulation of financial support of high-tech projects of subjects at the macro level was determined. To achieve the purpose of the study, the authors used the synchronization of flexible methods for the gradual financing of in-vestment projects, as well as methods of analysis of the dynamics of the innovation process of venture financing in Ukraine and countries of the world. The binomial model of estimating the value of the basic financial assets of venture funds at a risk-free rate was constructed by transforming the "tree" of the financial flows of the latter into the "tree" value of sources of venture financing of agrarian enterprises. It was proved that the attraction of long-term (due to Euro-bonds) and non-maturity (at the expense of placement of shares) of venture financing in the amount of 1 EUR., in the foreign equity market of venture capital allows ensuring an increase in agricultural GDP in Ukraine by an average of 6.8 EUR. Under the ideal conditions of the financial environment and achieving the risk-free margin of the financial flow margin for all the same type of agro holdings that form the volume of gross agricultural output, must have the same access to investment resources and equal rates of yield of financial assets in the investment portfolios of foreign venture funds.

Suggested Citation

  • Nataliya Trusova & Nataliya Tanklevska & Oleksandr Prystemskyi, 2019. "Venture Financing of the Subjects of Agrarian Business," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 99-108, June.
    • Handle: RePEc:iaf:journl:y:2019:i:2:p:99-108
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    References listed on IDEAS

    as
    1. Bertoni, Fabio & Colombo, Massimo G. & Grilli, Luca, 2011. "Venture capital financing and the growth of high-tech start-ups: Disentangling treatment from selection effects," Research Policy, Elsevier, vol. 40(7), pages 1028-1043, September.
    2. Rudra P. Pradhan & Mak B. Arvin & Mahendhiran Nair & Sara E. Bennett, 2017. "Venture capital investment, financial development, and economic growth: the case of European single market countries," Venture Capital, Taylor & Francis Journals, vol. 19(4), pages 313-333, October.
    3. Fairchild, Richard, 2011. "An entrepreneur's choice of venture capitalist or angel-financing: A behavioral game-theoretic approach," Journal of Business Venturing, Elsevier, vol. 26(3), pages 359-374, May.
    4. Mark V. Cannice & Jonathan P. Allen & Manuel Tarrazo, 2016. "What do venture capitalists think of venture capital research?," Venture Capital, Taylor & Francis Journals, vol. 18(1), pages 1-20, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    venture funds; venture capital; venture financing; investment resources; innovations; agriculture; agrarian enterprises;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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