Legal Oversight of Venture Capital Investment in Russia: Inconsistencies and Conflicts

Abstract

Introduction. This article focuses on the applicable Russian laws that govern the investment in early-stage and growth-stage tech companies (venture capital), with the aim of pinpointing its inconsistencies and conflicts. Methods. The study employed a general scientific analysis method, a formal legal method, and a systemic approach. Results and Discussion. Issues have been identified in the legal regulation of venture capital investment relationships. It has been determined that these issues arise from attributing various interactions, similar in their aim of profiting from investment transactions in companies that develop and implement new high-tech products, to venture relations. Conclusion. The conclusion is that the effective growth of venture capital investment is obstructed by numerous legal barriers, with some of them related to defining the legal status of participants in venture capital investment, while others are associated with issues in ensuring the transactions that primarily benefit venture investors. Barriers in the legal regulation of venture capital investor income taxation have not been removed.