Abstract
Abstract One of the main factors that constrains using of venture investment in innovative projects in the field of construction is high risk of this type of investment. Thus, the problem of risk assessment is relevant in the venture investment of innovative projects. First of all, it should be noted that the risks in the construction industry have considerable specificity and heterogeneity. Real options approach is an important tool with venture investment at all stages. It can be widely used in innovative projects in construction for accurate risk assessment.
Highlights
One of the main factors which holds back the activity of using venture capital in innovative projects in the construction is the high risk of this type of investment, in addition to this factor there can be unstable economic situation, lack of regulatory framework and lack of qualified personnel
Application of the real option method is useful when there is a high degree of uncertainty of results of the project, the possibility to make flexible decisions when new information and the negative value of net present value (NPV) appear in the project
The analysis of real options is useful in assessing the value of venture investment in construction, the commercial viability of which is very difficult to prove in the development phase (Ferzalieva, 2011)
Summary
One of the main factors which holds back the activity of using venture capital in innovative projects in the construction is the high risk of this type of investment, in addition to this factor there can be unstable economic situation, lack of regulatory framework and lack of qualified personnel. The research of existing methods of quantitative risk analysis made by the author shows that in the risk assessment of an innovative project using venture investment- it is necessary to assess all of the existing methods and choose the one that would take into account all the specifics of venture investment, and in addition can be used for the construction industry where the risk factor (uncertainty), is large, and the degree of the study of this problem is insufficient (Vladimirova & Pugacheva, 2013). 1. ANALYSIS OF METHODS OF RISK ASSESSMENT IN CONSTRUCTION USING VENTURE INVESTMENT
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