Trends in the development of venture funds in the Russian Federation

The article discusses the current problem of providing venture financing for innovative projects. Innovative projects are the necessary condition that will ensure the breakthrough technological development of the Russian economy. However, the underdevelopment of the venture ecosystem, which includes venture investors, significantly slows down this process. Venture capital funds hold a special place among venture investors as centers for pooling venture capital and its effective placement in innovative projects. With their enormous potential, venture capital funds could become not only a constant source of funds for financing innovative start-ups, but also an active participant in the process of creating and commercializing technological innovations. Thus, venture funds could become the flagship of the innovative development of the Russian Federation. However, in recent years, there has been a steady decline in venture financing of Russian innovation projects. The decrease is noted both in terms of the volume and the number of venture deals concluded. The structure of venture capital investments by major participants is also undergoing significant changes. The share of private venture capital shows a steady downward trend. In this regard, the article highlights the main reasons for the decline in popularity and participation of venture funds in the innovative development of the economy, as well as suggests measures aimed at overcoming this negative trend and supporting the further development of venture funds in the Russian Federation.