Study On Enterprise Value Creation Of Venture Capital And Intellectual Capital

Under the development of the knowledge economy, intellectual capital will become the key to the sustainable development of the real economy. However, to companies which rely on technological innovation or high-tech companies which are lack of the traditional factors of production or new start-ups companies, their intellectual capital value drivers also need to rely on a kind of equity capital characterized by long period, high-risk and high-yield. Risk investment fits this requirement. How to effectively employ value-added services to to help companies quickly enhance the value of intellectual capital creativity is the main issue to be addressed in this article.Venture value creation process is a complex nonlinear dynamic open system consisting of internal and external systems. Venture capital belongs to the outside capital of companies and is the fresh blood from the outside and through the injection to new start-ups, play capital appreciation effects. Intellectual capital belongs to internal capital of companies, can realize value creation, and plays an important role in support of value appreciation of venture capitals. Companies’ adaptation to internal and external environment largely depends on the synergy and unity between internal and external systems. Based on the enterprise value creation, this paper combines the venture capital theory, intellectual capital theory, synergy theory, follows the theoretical analysis-Synergy Mechanism- Synergy Model- An Empirical Study route, and tries to reveal how venture capital and intellectual capital work together to create value of companies from theory to practice and global to local angle. From the perspective of intellectual capital, this paper tries to make out how venture capital provides capital value-added services to companies, and provides useful guidance for start-ups’ in how to effectively employ external venture capital and for the problems being at present. This paper draws mainly the following conclusions:First, the process of venture capital creating value of companies is a cycle and repetition of investment, management and quit. In order to play the optimal efficiency of venture capital, these three stages have to achieve the greatest degree of synergy.Among them, the choice of investment business or project is the basis of the whole venture capital and is the prerequisites of risk management and achieving the final out of investment institutions. Value-added management services provided by venture capital institutions is an important guarantee for the entire process and provides useful guidance for the rapid growth of start-ups.Exit of venture capital investment is a necessary condition for the value creation of venture capital, as well as the main criteria for judging the success of the venture capital.Second, the process of co-evolution of venture capital and intellectual capital is an experience from scratch, evolving process.Through constant competition and collaboration, under the leading of institutional environment, industrial advantages, corporate behavior, venture capital and intellectual capital form a new harmonious system from both external and internal levels. Specific formation process goes through about three stages: the initial stage based on the discovery of venture capital value, the mid stage based on venture capital and intellectual capital symbiotic fusion, the final stage based on the realization of the ultimate goal of enterprise value.Third, this paper employs synergism theory and methodology to study value creation of this complex system.This study, to a certain extent, enriches and develops the theory of company value creation of venture capital and intellectual capital. By building collaborative model of venture capital and intellectual capital, the system explains how venture capital and intellectual capital achieve the whole process of co-evolution through different levels of competition and cooperation, and thus make the system from disorder to order.Fourth, from the perspective of empirical, this paper analyzes the synergies conditions of venture capital and intellectual capital. To companies that employ risk capital, the proportion of equity investment is the key factor that affects value growth of companies and stimulates intellectual capital’ multiplier effect. Therefore, when testing the collaborative changes between intellectual capital and venture capital, it is necessary to hold the proportion of venture capital as critical mutation point to analyze the performance of companies, so as to identify the critical condition that synergies play effects. This paper uses the proportion of venture capital holdings as a threshold variable, uses the panel threshold regression models. And the results show that a significant synergistic effect of venture capital and intellectual capital is based on investment holdings "double threshold effect".Intellectual capital and venture capital’ synergistic effect is the U-shaped trend. The synergy among the elements of intellectual capital and venture capital has an approximate S-type trend influence on enterprise market. The empirical results tell us that only when the ownership level is at a high level, the synergy effect of venture capital and talent, knowledge, skills, intelligence and other elements of the value creation on new enterprises have more space to play.Fifth, This paper verifies the synergistic effect of venture capital and intellectual capital from an empirical perspective, emphasize on the impact of on the synergies’ effect on the enhancement of the efficiency of corporate assets, return on equity and corporate capacity to grow.The results show that intellectual capital and venture capital’ synergies has different effect on different companies’ performance and the impact on corporate asset utilization efficiency is the most prominent. Meanwhile, empirical test of different venture capital characteristics of investment provide a deeper understanding of synergies between them, including the followings: joint venture investment behavior has more advantages in improving the efficiency of the corporate intellectual capital, high reputation venture capital institutions provide much better value-added services for the innovation capital and social capital than the low reputation venture capital institutions can provide.According to the theoretical analyzing conclusion and empirical conclusion, the paper put forward related suggestion to improve venture capital operating mechanism and corporate intellestuall capital management from venture capital, new start-ups and the government three angles.