Improving Venture Investment Tools: Neutralizing Financial risks and Achieving Sustainable Development Goals

Abstract

This paper’s goal is to study the effect of venture capital investments on the financial risks of sustainable development, determine the change of the financial risks of implementing the SDGs (from the standpoint of venture capital investments) under the impact of the COVID-19 pandemic and crisis, and to discover the perspectives of risk management. This paper’s originality lies in proposing and substantiating a new (additional) criterion of classification of venture capital investments from the standpoint of their consequences for the SDGs – the object of venture capital investments (a thematic block of the SDGs). This paper’s uniqueness is due to it allowing using the proposed new (particularly useful in practice) criterion to identify the financial risks of sustainable development, to quantitatively measure the change of the financial risks of implementing the SDGs (from the standpoint of venture capital investments) under the impact of the COVID-19 pandemic and crisis, and determine the practical perspectives of risk management. Management implications are as follows: this paper forms a scientific basis for improving the implementation of the mechanism of venture investment to support the SDGs within the manifestation of corporate social responsibility in business. The practical significance of the authors’ conclusions is due to them allowing for the improvement of the practice of decision making regarding the placement of venture capital investments.