Study On Mechanism And Process Of Venture Capital

The thesis begins with the basic connotation and characteristics of venture capital (VC). And it focuses on the study of theoretical evidence for VC, procedure for VC operation, systemic evaluation and decision on projects or enterprise, concluding agreement on investment, controlling investment risk and withdrawing from venture enterprise. As for the theoretical analysis of VC, author discusses the theoretical evidences of VC existence and operation from three aspects: transaction-cost theory, principal-agent theory and adverse-selection theory, The author segments the paper into 5 parts: selection of projects or enterprises, analyzing market, negotiating and concluding agreement, hatching enterprise and achieving capital return, according to operation. The selection of project or enterprise and withdrawing capital from enterprise are key points of Study on mechanism and process of venture capital. Above all, this thesis uses Analytical Hierarchy Process, AHP, comprehensively evaluating the risk of project or enterprise, which forms the quantification basis of decision-making. At last, the author contracts the mode of VC development in china to those in other countries and points out the weakness of our VC environment, which gives several suggestion of how to promote the development of Venture Capital cause in china.