Innovative development of economy is the only chance for Ukraine to ensure a breakthrough in creating competitive products and a high income. Most innovations are financed by the government, corporations, and venture capital funds. In conditions of poor government funding and the reluctance of corporations to invest in innovations, a special role in the development of innovations are beginning to play venture capital funds that are interested in financing high risk projects. But the venture business has a number of problems in Ukraine. This article shows the features of the concept and operation of the venture business, was the most important experience of the Western practice of venture funds, the analysis of the concept of a venture fund in the Ukrainian legislation, the negative factors affecting venture funds in Ukraine, revealed the possibilities and prospects of activities of these funds in the country.

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