FINANCIAL INSTRUMENTS FOR SUPPORTING STARTUPS: PERFORMANCE EVALUATION IN UKRAINE AND THE EU

Abstract

This article is devoted to a comprehensive analysis of financial instruments for supporting startups in Ukraine and the European Union. The study examines key sources of funding for innovative enterprises, including government grant programs, venture capital, blended finance mechanisms, as well as institutional instruments implemented under the Horizon Europe and European Innovation Policy programs. Particular attention is paid to the role of the European Innovation Council as a central element in supporting high-risk technology startups, combining grant and investment components. The paper conducts a comparative analysis of the financial instruments of the European Union and Ukraine in terms of their accessibility, scale, and effectiveness in influencing the development of innovation ecosystems. It has been established that European Union countries have developed a multi-level financing system that covers all stages of startup development—from the initial idea to scaling up—whereas in Ukraine, support is focused primarily on the early stages and has a limited financial scope. The study’s findings show that combining grant instruments with investment mechanisms helps reduce risks for entrepreneurs, stimulate the attraction of private capital, and accelerate the commercialization of innovations. At the same time, key limitations of the Ukrainian system have been identified, including the underdeveloped venture capital market, limited access to large-scale investments, and insufficient integration into international financial programs. The article justifies the need to develop a comprehensive model for supporting startups in Ukraine that combines government funding, international instruments, and the development of private investment. The findings can be used to improve government policy in the field of innovation and enhance the competitiveness of the national economy.