Development of sustainable equity financing to promote the Russian venture capital industry

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Anastasia V. Erokhina^а
Leonid P. Sinyutin^а

^аRussian Academy of National Economy and Public Administration under the President of the Russian Federation

DOI: 10.22394/2070-8378-2023-25-1-31-40

Abstract:
The authors proposed that the development of financing associated with achieving the Sustainable Development Goals will favorably affect the VC industry in our country. The characteristics of venture capital fit perfectly into the philosophy of sustainable development because of the long-term nature of the investment and the social role that comes with it. At the same time, ESG allows you to address the potential economic risks associated with VC. Given this context, the rapidly changing factors of the external and internal environment of the organizations and the unstable ESG financing market make it challenging to implement such projects without state support. In Russia, such support measures include a range of laws to give preferential treatment to companies engaged in sustainable development projects. The development of domestic ESG financing will be an additional incentive for entrepreneurship in Russia. The authors concluded that at the early stages of domestic companies’ development, state support and private investment in ESG equity financing would facilitate the growth of the Russian VC industry.

Keywords:
sustainable development, investment in innovation, venture capital, environmental, social, and corporate governance (ESG), equity and debt financing

Received:
January 11, 2023

References:
Margolin A.M., Sinyutin L.P. Underlying challenges for Russian venture industry development and methods to solve them. Upravlencheskoye konsul’tirovaniye. 2022. No. 1. P. 47–63. In Russian
Margolin A.M., Spitsyna T.A. Effective investment policy as a key to sustainable development of the Russian economy. Gosudarstvennaya sluzhba. 2021. No. 5. P. 37–46. In Russian
Margolin A.M., Vyakina I.V. Risks, threats and mechanisms of management systems ESG-transformation. MIR (Modernizatsiya. Innovatsii. Razvitiye). 2022. Vol. 13. No. 3. P. 352–368. In Russian

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