№ 7/2017

Fìnansi Ukr. 2017 (7): 43–55

FINANCIAL AND ECONOMIC REGULATION

TATOMYR Iryna ¹

¹Drohobych Ivan Franko State Pedagogical University
OrcID ID : https://orcid.org/0000-0002-3274-7083

Perspective directions of venture investing of education startups

The article reveals the mechanism of venture capital funds and defined the structure of the formal and informal sectors of the venture capital market. The scientific potential of Western authors on the prospects for a new trend in financing online education is analyzed. This paper presents an assessment of the dynamics of venture investments in projects of various segments of education industry (school, university, corporate training). The most expensive EdTech- companies are determined by the amount of attracted investments. It is established that the USA, which accounts for the largest share of venture capital investments, has been the leader in the online education market for several years in a row. The author substantiates most promising niches for venture investment, in particular K12 educational institutions, VR- and AR-solutions (virtual and augmented reality) for education, microlearning, online tutoring, cross-functional education platforms that provide for higher education and additional vocational training, education lending services, etc. It is established that the main obstacles to the development of the venture industry in Ukraine is the lack of economic incentives, which ensure an acceptable level of risk for investors to attract direct investments in promising educational start-ups, and underdeveloped infrastructure, which would provide for the formation of new and further development of existing startups in Ukrainian education which could be subject to direct investment. The author suggests several measures that would facilitate the involvement of business angels and portfolio investors to the development of the national market of online education based on new innovative achievements.

Keywords:venture capital, business angels, portfolio investors, educational startup.

JEL: G24, I22, I25

Tatomyr I. . Perspective directions of venture investing of education startups / I. Tatomyr // Фінанси України. - 2017. - № 7. - C. 43-55.

Article original in Ukrainian (pp. 43 - 55)

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