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The Research On The Operation Machanism Of Venture Capital And The Supervising And Controlling On Risk

Posted on:2003-08-12Degree:MasterType:Thesis
Country:ChinaCandidate:W Y GaoFull Text:PDF
GTID:2156360065955914Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
Venture capital market in China has been established only for decades. The community has more and more realized its propulsive effect to other industries, especially to hi-tech industry. It is widely accepted that venture capital is not only the incubator of the development of hi-tech firms, but also the impeller of economics. Due to the high potential and high rate of return, many venture capital investors neglect the characteristics of high return and high risk of venture capital. The burst of Internet bubble brings us both the experience from success and the lessons from failure. Those venture capital organizations begin to think about the potential risk brought by the information unsymmetry and the uncertainty seriously. The operation mechanism of venture capital investment in China is just on the start-up. Effective mechanism of incentives and monitoring has not been established. Based on some investment cases as well as the status quo of China's venture capital market, this paper discusses the operation mechanism and mode of venture capital investment, and brings forward a set of effective method for the monitoring and managing of venture capital investment, in order to optimize the operation mechanism and provide the foundation for scientific decision-making. This paper consists of fine chapters:Chapter 1: Exordium. Introduces the background, purpose and significance of this paper, as well as the relative concepts and characteristics. Also describes the status quo of relevant researches in China and aboard. The main content of this research is shown at the end of this chapter.Chapter 2: Analyses of venture capital's status quo in China. Reviews the development course of China's venture capital. The development course of China's venture capital can be divided into three stages: 1986-1991 is the beginning, 1991-1997 is the rising period and 1998-2000 is the rapid-growing period. Characteristics of each stage are induced. The author also analyses its status quo, points out that the shortage of funds is the main problem of many hi-tech firms at the start-up, and the impelling of venture capital can partly solve this situation. At last the author points out seven main problems that exist in China's venture capital investment.Chapter 3: The operation mechanism and mode of venture capital investment in China. Analyses the basic preconditions of the development of China's venture capital investment from both outside factors and inner mechanism. Outside factors include innovation system, the maturity of market economics, financial market, policies, human resource and jurisprudence. Inner mechanism includes retreat system, incentive system, restriction system and decision-making system. When discussing the retreat system, the authorintroduces several retreat ways especially the Second Board. The incentive system and restriction system for both investors and enterprisers has been involved. To the decision-making system, the author introduced its general procedure and key contents. In advance, the author discusses the operation mode for developing the venture capital investment in China.Chapter 4: Risk monitoring and management of venture capital investment in China. Concludes and classifies the systematic risks and non-systematic risks. Analyses different control methods according to different risks. These control methods include risk avoidance, risk transfer, risk decentralization and loss control. The author puts forward several modes for the venture capital investors to monitor and control the firms based on China's facts. Furthermore, the risk evaluation based on AHP and fuzzy mathematical evaluation model and early warning of venture capital including the organization, operation methods, operation procedure and measurements are also discussed.Chapter 5: Countermeasures for optimizing the operation mechanism of venture capital investment in China. Based on the revelations of investment practice as well as China's factors, the author puts forward several countermeasures for optimizing the ope...
Keywords/Search Tags:venture capital, venture business, monitoring, management
PDF Full Text Request
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