Research On Early-Warning Management Of Venture Capital

Chinese venture capital industry started in the 1980's and underwent the rise and fall in the 1990's. It weighs a great lot for China to boost her new economy by studying how to develop venture capital industry rationally in 21st century. This research studies early-warning management in all the stages of venture capital. Using theories such as risk theory, early-warning theory and real-option theory etc. this research designs the main function modules of the early-warning management software. An empirical study was carried out to verify the theory & method proposed in this dissertation by visiting a venture company. When suggesting build in the venture capital early-warning management software into its daily used software, the venture capital company highly appraised this proposal. Hope this study will help local and foreign venture capital companies understand the Chinese venture capital industry better in both theoretical & practical ways. This research has 7 sections:Section 2 of this paper recaps the history of venture capital in China and in few developed countries and recaps VC management theory. It analyses the characteristics & risks of venture capital; it also describes the interactive between venture capital companies and venture capital enterprises.Section 3 defines the theory & method of venture capital early-warning management. It introduces the basic theories of venture capital early-warning management and considers some methods, too.Section 4 discusses the early-warning management in fund-raising phase of venture capital. It compares the fund-raising ways & procedures in China and abroad; optimizes fund-raising methods in China; sets up & analyzes the early-warning risk index; presents the methods of early-warning & pre-controlling management.Section 5 discusses the early-warning management in investment phase of venture capital. It present the risk atlas of venture investment; early warns the risks using real-option theory, puts forward the early-controlling management methods in this stage.Section 6 discusses the early-warning management in exit phase of venture capital. It lists the risks & risk symptoms of four main exit methods; builds the early-warning management system for this phase and puts forward the methods of early-warning & pre-controlling management in this stage.Section 7 summarizes the empirical study & presents the computer realization of the early-warning management system. It designs the main modules of early-warning management software and suggests build it in the daily used software of a venture capital company where the empirical study was carried.Section 8 concludes.