Exit strategies for investors from the venture financing process for enterprises of agriculture in Ukraine

Abstract

Introduction. Today the agrarian sector of Ukraine needs more additional funds for financing new and existing businesses. Short and long term bank loans are becoming less accessible to small and medium enterprises and venture capital can solve the problem of lack of capital. But one of the conditions for venture capital investment is the availability and consistency of exit strategies from the financing at the stage of making a decision on the expediency of investments.

The purpose of the article is to explore the main exit strategies from venture financing process and to analyze the accessibility of each strategy (IPO, IPO, MBO, MBI and LBO) for agricultural enterprises in Ukraine.

The method (methodology). In the study used graphical and comparative methods for analysis and display of exit dynamics data from venture financing process. The method of comparison been used for selecting of optimal strategy and method of analysis and synthesis used to construct the dual-process circuit.

Results. The article defines the strategy of initial public offerings as the most successful and at the same time the most costly in terms of the organization for the enterprises of the agricultural sector of Ukraine. At the same time, the strategy of direct selling shares to strategic investors is the most accessible in Ukraine, because it characterized by minimal time and money costs. The method of writing off debt (bankruptcy) defined as the least attractive, because it does not allow returning the invested venture capital to investor and the company stops its activities. In the research was modified and the proposed dual-process circuit of out from the venture capital, that enables to enterprises to increase the cost of business before the stage of sale to a strategic investor.