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Issues of Development of Venture Activities in Armenia in the Context of International Experience

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Abstract

The paper represents the need for venture financing in the development of the country's financial system and startup ecosystem, as well as discusses the issues of effective implementation of legislative and market mechanisms arising from the need for their introduction. Then, reference is made to the peculiarities of venture fund activities, investment directions, the need for state support, based on international experience and economic and financial market specifics of the Republic of Armenia. Investment attractiveness in Armenia is valued based on the "Venture Capital and Private Equity Country Attractiveness Index", which enables us to discuss the indicators of venture attractiveness of the Republic of Armenia, gaps and current issues and then the peculiarities of existing funds and their investment preferences. A preliminary assessment of the investment policy of venture capital funds operating in the Republic of Armenia was carried out based on the indicators registered in the investment industry (e.g. IPOs, M&A deals), as well as the indicators of market value assessment.
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DOI: 10.52174/1829-0280_2021_1_79
JEL: F21, G24, P33
2021.1
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11 VenturePulse 4Q 2019. Global Analysis of Venture Funding. KPMG, CB Insight, 2020.
https://www.statista.com/statistics/1071129/value-of-investments-by-venture-capital-international/
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14 Kirihata T., Japanese government venture capital: what should we know? Asia Pacific Journal
of Innovation and Entrepreneurship 12(1), April 2018, 14-31
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21 N 1083- , 03.10.2013.
http://www.irtek.am/views/act.aspx?aid=72728
22 https://pitchbook.com/profiles/investor/91428-04#investments
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28 I National Venture Capital Association and IHS/Global Insight, Venture Impact, edition 6.0,
(NVCA, 2011). https://nvca.org/
29 .
https://www.armstat.am/am/?nid=12&id=08010&submit=%D5%93%D5%B6%D5%BF%D6%80%D5%
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32 https://www.globalinnovationindex.org/gii-2020-report
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structure, 2019.
https://www.researchgate.net/publication/331276946_Valuation_with_multiples_averaging_links_ag
gregation_and_the_impact_of_capital_structure
34 https://imaa-institute.org/mergers-and-acquisitions-statistics/
35 https://www.bakermckenzie.com/en/insight/publications/2019/12/ipo-index-2019#:~:text=Key%
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36 National Venture Capital Association (NVCA), 2020 Yearbook, 2020.
https://nvca.org/wp-content/uploads/2020/04/NVCA-2020-Yearbook.pdf
37 https://www.crunchbase.com/ :
38 Statistia: Average EV/EBITDA multiples in the media & advertising sector worldwide in 2019
and 2020, by industry, 2020 ( 2019 .,
).
https://www.statista.com/statistics/1030100/enterprise-value-to-ebitda-in-the-media-and-advertising-
sector-worldwide/#:~:text=EV%2FEBITDA%20in%20the%20media,worldwide%202019%2D2020%
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depreciation-and-amortization-of/
41 https://www.nasdaq.com/articles/netflix-will-spend-%2417.3-billion-on-content-this-year-but-
growth-is-slowing-2020-01-23
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5. , -
.
6. , -
-
, 2011.
7. .
8. Romans A., The Entrepreneurial Bible to Venture Capital: Inside
Secrets From the Leaders in the Startup Game. Aug 28, 2016.
9. Schueler A., Valuation with Multiples: Averaging, Links, Aggregation,
and the Impact of Capital Structure, 2019.
10. Keuschnigg Ch., Venture Capital Backed Growth, 2004.
11. Kim Daniel S. and Jun Yong-Nam, Orrick Herrington & Sutcliffe
LLP: Venture Capital Investment in the United States: Market and
Regulatory Overview, 2020.
12. Lerner Josh, Leamon Ann, Garcia-Robles Susana, Best Practices in
Creating a Venture Capital Ecosystem, 2012.
13. Bloom Nicholas, Sadun Raffaella and Reenen John Van, Do Private
Equity Owned Firms Have Better Management Practices?, 2015.
14. KirihataTetsuya, Japanese Government Venture Capital: What
Should We Know? Asia Pacific Journal of Innovation and
Entrepreneurship, 12(1), April 2018.
97
15. Statistia: Average EV/EBITDA Multiples in the Media & Advertising
Sector Worldwide in 2019 and 2020, by industry, 2020.
16. National Venture Capital Association (NVCA), 2020 Yearbook.
https://nvca.org/
17. www.armstat.am
18. www.un.am
19. www.gks.ru
20. www.nasdaq.com
21. www.coursehero.com
22. www.crunchbase.com
23. www.cbinsights.com
24. www.brookings.edu
25. www.globalinnovationindex.org
26. www.researchgate.net
27. www.semanticscholar.org
28. www.statista.com
-
-
-
, -
, -
. -
-
-
-
-
(IPO, M&A),
.
-
.
DOI: 10.52174/1829-0280_2021_1_79
JEL: F21, G24, P33
2021.1
98
MARE KHACHATRYAN
Assistant Professor of the Chair of Finance at ASUE,
PhD in Economics, Associate Professor
HAYK KALANTARYAN
4th year BA Degree Student of the Department of
Accounting and Auditing at ASUE
Issues of Development of Venture Activities in Armenia
in the Context of International Experience.- The paper
represents the need for venture financing in the development of
the country's financial system and startup ecosystem, as well as
discusses the issues of effective implementation of legislative and
market mechanisms arising from the need for their introduction.
Then, reference is made to the peculiarities of venture fund
activities, investment directions, the need for state support,
based on international experience and economic and financial
market specifics of the Republic of Armenia. Investment
attractiveness in Armenia is valued based on the "Venture Capital
and Private Equity Country Attractiveness Index", which enables
us to discuss the indicators of venture attractiveness of the
Republic of Armenia, gaps and current issues and then the
peculiarities of existing funds and their investment preferences.
A preliminary assessment of the investment policy of venture
capital funds operating in the Republic of Armenia was carried
out based on the indicators registered in the investment industry
(e.g. IPOs, M&A deals), as well as the indicators of market value
assessment.
Key words: venture capital, start-up, investment environment,
innovation, venture fund.
DOI: 10.52174/1829-0280_2021_1_79
JEL: F21, G24, P33
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