Study On Synergy Risk Management Of Venture Capital Process

Facing the challenges from knowledge-based economy and global integration, to develop hi-tech industries and to enhance the comprehensive national strength are very urgent. The practices of the developed country show that venture capital at the field of supporting innovation activities and hi-tech industries has a unique and irreplaceable role. It is a "roll booster" of hi-tech industries and a "motor" of economic growth. The business venture of hi-tech industries is a dynamic technical economic process. The high risk characteristics of venture capital is induced by the economic characteristics, future development's uncertainty and many other factors of hi-tech business venture. The exertion of venture capital financial value needs a set of effective risk management mechanism. This mechanism fetch up the shortage between the hi-tech investment operation mechanism and traditional investment operation mechanism, which are inherent in technology innovation and technical transformation.The venture capital process is a dynamic on-limits and nonlinear complicated system, with higher risk and is more complicated. Increasing the study on the risk management during the venture capital process systematically will, on the one hand, enhance the risk management level of venture capital, and help to optimize the collocation of the resources; on the other hand, help to develop and enrich risk management theory of venture capital.Based on the studies made by other people before, the venture capital process is divided to three sub processes, which are financing, investing and exiting. And from the view of a venture capital expert, this paper taking the conception of the synergy degree as the core, using Synergy Theory, studies separately the process of the three sub processes, financing, investing and exiting. And based on these studies, the risk management of the whole venture capital process is studied and synergy degree measurement model is set up, factors that may affect the synergy degree during the venture capital process is studied comparatively. The main studies and results are as follows:The research basis of the risk management during the venture capital process is studied. The definition and characteristics of risk and venture capital are expatiated. The operation process of venture capital is analyzed. Based on these studies, the static, dynamic and complex characteristics of venture capital risk are compared. Venture capital process as a dynamic, on-limits and nonlinear complicated system is pointed out, which makes the studies on venture capital process by Synergetics becomes possible. Based on Synergetics, synergetic characteristics dynamic mechanism and risk characteristics of venture capital process are analyzed. The conception of synergetic degree is pointed out and is used as the gist and criterion of the risk management during venture capital process. Based on the analysis on the definition of risk management, risk management theory basis of venture capital is expatiated, risk management framework of venture capital process based on Synergetics Theory is bring forwarded. Risk management of financing during venture capital process is studied.Financing mechanism of venture capital is expatiated, including the source of capital, collecting strategy and organizational system of venture capital institution. Limited Partnership organizational system operation has the highest efficiency. Based on the Synergetics Theory, synergetic mechanism of financing process is studied. Value discovery is the order parameter of financing process, which decides the evolution direction of financing system. Synergetic degree of financing is the gist and criterion of the risk management during financing process. Based on these studies, risk management of financing process based on Synergetics Theory is studied.Risk management of investment during the venture capital process is studied. The venture economic characteristics and synergetic relationships of hi-tech industries are expatiated. Economic characteristics of hi-tech industries business venture is one of the main sources of venture capital high risk. Investment mechanism of hi-tech industries is analyzed. The impacting factors of making venture capital investment decision are compared. A complete venture capital decision making SNM model is brought forward. Based on the Synergetics Theory, synergetic mechanism of investment process is analyzed. Value discovery is the order parameter of investment process, which decides the evolution directions of investment system. Synergetic degree of investment is the gist and criterion of the risk management during investment process. Based on these studies, risk management of investment process based on Synergetics Theory is studied.Exiting risk management during venture capital is studied. The exiting mechanism of venture capital is expatiated. Main exiting way and its effection are compared. The best exiting way is to be listed in the stock market. The important role of exiting mechanism of venture capital is analyzed. Exiting is the core of venture capital circle. Based on Synergetics Theory, synergetic mechanism of exiting process is studied. Value realization is the order parameter of exiting process, which decides the evolution directions of exiting system. Synergetic degree of exiting is the gist and criterion of the risk management during existing process. Based on these studies, risk management of exiting process based on Synergetics Theory is studied.Synergetic risk management of financing-investment-exiting is studied. Synergetics Theory of venture capital processes is expatiated. The economic value realization of the venture capital is the order parameter of venture capital processes, which decides the evolution directions of the venture capital processes. The meaning and framework of synergy between venture capital processes and its factors are studied. Synergetic CCS three phase models of venture capital processes is set up. Based on this, synergetic degree measurement model of venture capital processes is set up. The effectiveness of synergetic degree measurement model during venture capital processes is studied from the aspect of theory and practices. The synergetic degree measurement model is the gist and criterion of risk management during the venture capital processes, which provides a new instrument and way for the theory and practice of venture capital risk management. Based on this, the risk management during the processes of venture capital based on synergetic theory is studied.At last, in the conclusion part the studies of this paper is summarized, especially the main innovation points and the related problems which have not been studied in this paper are viewed.