Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)

Abstract

Risk Assessment Model of Government-Backed Venture Project Funding: The Case of Russia

Author(s): Svetlana V. Zemlyak, Svetlana Yu. Sivakova, Irina E. Nozdreva

The venture capital market acts as a driver for the development of regional, national and global economies, contributing to the activation of the development of scientific and technological progress. The authors consider the idea of venture financing of innovative projects and develop a risk assessment model on the basis of a dynamic partial differential equations. The authors take into account the fundamental idea of getting the investor a high premium for high risk: financing a risky startup, if it is successful, brings the investor income that is many times higher than the initial investment of the investor. The choice of the research method is due to the complexity of the task, in which the processes take place both in time and transitions between the stages of venture projects. The developed approach enables improving the efficiency of enterprises in traditional sectors of the economy, the development of new industries and the formation of new market niches.

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