Project Evaluation And Governance Mechanism Of Venture Capital

In the knowledge economy era of the 21th century, high-tech industry will become the most significant support of the knowledge economy. The emergence and rapid development of high-tech industry representative of electronic information, biotechnology, new material and new energy, will fasten the step of the adjustment and the upgrade of the structure of the world industry, and shorten the process of the transition from the industry economy to the knowledge economy, in which venture capital plays a significant role. Venture capital accelerates the transformation from achievements of high-tech to productivity, and promotes the development of high-tech industry so that the social economy, as a whole, can be stimulated and be full of vitality. Therefore, the research of capital venture is the focus and difficulty in the present theoretical field. This paper first analyzes the development mode of capital venture with regard to the time sequence, and in comparative and inductive ways, induces the main two development modes of the present venture capital: one is the development mode centering upon the securities market; another is the development mode concentrating on the bank. Through conducting a comparative analysis of the effectiveness of the two modes, the paper concludes that the former is the present major development mode. Secondly, the paper systematically analyzes the mechanism of venture capital in the development mode concentrating on the securities market. In the end, the paper pays attention to the project evaluation and the governance structure of venture capital in the development mode concentrating on the securities market. With regard to the project evaluation, the paper conducts an analysis in two main aspect: (1) with respect to the project evaluation, basing on some good present indicators, combining with the physical truth of venture capital, and creatively using fuzzy mathematics, the paper develops a general project evaluation model of venture capital; (2) with respect to the project value decision, the paper concludes that it is possible to overcome the disadvantages of the traditional way of value decision by using the operation value decision, followed by presenting and analyzing its advantages and disadvantages. And with respect to governance mechanism, the paper begins with contract content, economic connotation and mathematics model, then gets deep research into the governance mechanism of venture capital, and develops a too choice model of venture capital based on intervence decision.