The role and importance of venture capital investment funds in venture capital financing

Technology and innovation are the most important tools for boosting economic development and social welfare. Today, the world's most valuable companies are generally venture-backed companies. Venture capital investments are long-term financial investments provided to the high potential firms by taking higher risks. The purpose of this study is to explain the role and importance of venture capital investment funds in venture capital financing and to explore the relationship between venture capital investment and economic growth. In the first chapter, entrepreneurship is defined. In the second and third chapters, venture capital financing models and venture capital investments in the world are explained. In the following chapters, the data about venture capital investments in Turkey is given. In the study, the interview was conducted as a qualitative research method, and data was collected from 12 Portfolio Management Companies, by which eighty percent of the total size of venture capital investments were issued. The findings of this study show that there is a positive correlation between venture capital investments and economic growth. We also found the problems encountered in venture capital financing in Turkey. As a result of this study, it is aimed to contribute to the literature by suggestions to solve these problems.