The Research On The Value Evaluation Of Technology Growth Projects In Venture Capital Investment In China

Venture capital investment is the investment behavior that obtains high returns from the value-added capital withdraws of share rights brought by rapid growth of the enterprises invested, through investing in the small & medium-sized growing enterprises which are unlisted, especially the share rights of high-tech enterprises, and through implanting appropriate management.Since 1985, venture capital investment has been introduced into China, particularly since 1989's First Proposal, it gradually got started and developed; as yet, it has achieved remarkable progress. Currently, many negotiation and investment cases of venture capital are carried out every year; however, each investment process, from the cooperative negotiation between a venture capital firm and a start-up enterprise to the final investment implementation, inevitably goes through a process of mutual communication, negotiation, and decision making. During this process, venture capital firms must face and resolve one realistic problem:whether the start-up enterprises have investment values and how costly to obtain their share rights, that is, how to confirm the values of those enterprises.This thesis starts from the basic concepts of venture capital investment, bases on venture-capital research results from the existing domestic and foreign theory circle and business community, integrates with the author's long-term practical experiences in the field of venture capital, and researches on value evaluation of technological entrepreneurship projects during the venture capital investment process. Firstly, through analyzing the behavioral characteristics and internal mechanism of venture capital, this thesis innovatively discloses the essential characteristics of venture capital that is conducted as a type of value-discovery investment and analyzes the constituent factors required by venture capital to discover values of enterprises. Secondly, through analyzing and researching on the growing mechanism and internal system of the start-up technology enterprises, this thesis expresses the dynamic description of the start-up technology enterprises' value components that venture capital needs to discover (that is, the value connotation and dynamic-changing characteristics of start-up technology enterprises that differ from other enterprises), in order to define multi-stage and dynamic concepts of value-evaluation about start-up technology enterprises. Finally, through analyzing and comparing the present value-evaluation theories and methods, this thesis chooses real option theory as a support, introduces concepts of real option integrated with the growing-stage characteristics of start-up technology enterprises and behavioral-process characteristics of venture capital, establishes a mathematical mode that supports venture capital from its point of view to evaluate values of the start-up technology enterprises and to perform mathematical inference based on this thought, in order to clearly represent the entire analyzing process that venture capital evaluates values of the start-up technology enterprises.