Venture Financing as Support for the Sustainable Model of Post-War Rebuilding in Ukraine

Abstract

Currently, the Ukrainian economy faces a measure of challenges, caused by damages, losses and qualitative impacts. The primary ideas of post-war rebuilding have been conducted and presented at an international conference in Lugano, Switzerland. At this conference, the main primary areas for post-war rebuilding have been divided to be realized within the post-war rebuilding plan for the following ten years. The primary goal of the plan is to provide a unique chance not only to compensate for damage caused by the war but also to accelerate economic growth and improve quality of life in Ukraine. Thereby, there is an urgent need to describe a wide range of possible financial resources to support post-war rebuilding, based on innovative development and criteria of sustainable growth. The current research problem lays in the innovative forms of financial support following key principles of sustainable post-war rebuilding in Ukraine, namely stages of stability, restoration and modernization. The functional directions of post-war rebuilding are defined within the Ukraine recovery conference as of 2022 that are provided as continuation of the previous Ukraine reform conferences. The current research aims to represent the division of functional direction within the stages of stability, restoration and modernization, defining the necessary amounts of resources to be attracted for these stages. The capacity of venture financing is analyzed in the context of sustainable transformations within the post-war rebuilding process. As a result, the business angels are defined as an attractive source of financial support for the stability stage of post-war rebuilding in Ukraine, aiming to overcome the main part of damages and loss, caused by the full-scale war. The restoring stage is connected with long-term support of innovative projects within a sustainable restoring strategy. Venture funds and international organizations are important actors to conduct sustainable financing at micro- and macro-level. The venture capital divisions of specialized corporations and investment banks tend to provide financial and consulting support at the modernization stage of the post-war rebuilding process.

Keywords: innovative development, financial support, sustainable development, venture financing.