Research On Venture Capital's Risk And Its Avoidance

In the era of knowledge-driven economy, high-tech industry has become the first support and main power to economy development, and the development of high-tech industry is most determining the development of economy. The Venture Capital (VC), which is the propeller to the high-tech enterprises, is favor by the people day after day. A major factor to getting success in VC is its risks. This text researched the risks of VC from the point of the VC Company.At the first, VC's concept, development, essential factors, feature, courses and functions had been introduced concisely. Studied of the Schumpeter J.A. economics development theory, pointed out that VC is an innovation of financial system. After depiction of the corresponding risk theory, definted the risk of VC, and analyzed the risk properties, then brought forward the risk principles. Used a new model to study the risk phase carefully, analyzed the adverse selection and the morality hazard, which bring out by the information dissymmetry in VC. In this paper, the risk factors of VC were discussed in-depth. Basic of the former researcher's work, found out the risk factors indexes, and designed the factors indexes system. Used the fuzzy mathematics theory, presented the fuzzy comprehensive judgment model of the risk in VC. According to this model, designed the linguistic echelon fuzzy numbers, and introduced the Ordered Weight Averaging (OWA) operator to the fuzzy aggregate, got the fuzzy OWA operator. After the comparison of the fuzzy numbers, set up the risk fuzzy owa measure method of VC. Basic of the risk measure, introduced the risk decision ways in VC. In accordance to avoid the risks, some countermeasures and methods were brought forward. By the VC Company, studied about how to avoidant the risks in the invest process and how to control the risks in the risk company. Finally, Got some suggestions to avoid the VC risks.