The Impact of Regional and Segmental Factors on the Benefits and Risks of Venture Capital Financing

Abstract

This paper presents an analysis of aspects of venture capital (VC) financing, focusing on risks and rewards, correlation with geographic location and industry. The results were obtained through statistical analysis of data from public startup databases and a questionnaire distributed to selected VC-funded startups. The aim of the paper was to analyze the risks and benefits of VC funding and the impact of regional and segment factors. The paper identifies the key benefits of VC funding as fast and flexible access to capital, while the key risks include loss of control over the business and high pressure on performance. The analysis suggests that the perceived riskiness of VC financing is strongly influenced by both geographic location and industry. Certain geographic locations were found to have an affinity for specific industries, suggesting regional specialization within the VC market. The paper reveals significant trends in funding, with the dominance of technology startups, business platforms and the HealthTech sector, and increasing activity in certain regions in recent years.