VENTURE CAPITAL FUNDS AS SOURCE OF ALTERNATIVE FINANCING THE GROWTH AND DEVELOPMENT OF STARTUP COMPANIES IN THE REPUBLIC OF SERBIA

Abstract

Startups as economic entities are characterized by a high degree of innovation, the potential for rapid and large growth, but also significant business risk, so investing in startups represents a special kind of challenge. Taking into account the growing potential of the Serbian startup innovation ecosystem and the increasing number of startups, the paper analyzes venture capital funds as effective alternative source of financing the growth and development of startup companies in the Republic of Serbia. The fact that financing is one of the most significant challenges faced by Serbian startups also indicates the importance of venture capital funds for the development and increase of the competitiveness of the domestic startup ecosystem, which was recognized and institutionalized in previous years through state regulation. Their business creates new ways of financing for startups, but also reduces the risk for investors, and with the global success of several Serbian startups, the increasing presence of foreign investors in the form of venture capital funds is more noticeable.