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A Study On Valuation Methods Of Venture Capital Investment For China High-Tech Industry

Posted on:2005-02-10Degree:MasterType:Thesis
Country:ChinaCandidate:Y Q WangFull Text:PDF
GTID:2156360152466969Subject:Industrial Economics
Abstract/Summary:PDF Full Text Request
High-tech industry is the main source of country competitive advantage. Venture capital investment is an effective financing model for High-tech industry. Three issues are discussed here. One is the characters of venture capital investment and the limits of traditional decision-making valuation methods. Second is the merits of application of real option valuation (ROV) for venture capital investment. Another is the applicability of ROV in venture capital investment.With qualitative and quantitative methods, application and applicability of DCF-based Decision Tree Market methods and real option methods are analyzed. The research conclusions suggest that the tradition methods such as NPV Decision Tree Market neglect the flexibility value of the venture capital investment. ROV can capture the flexibility value of the venture capital investment. But there are some limits from application of ROV for venture capital investment. In some cases , ROV for venture capital investment is a scientific method. But applying ROV for venture capital investment in China is not feasible in some complicated cases.Probing into decision-making methods for venture capital investment in China , the intention of this research is to improve the decision-making technology of China venture capital investment organizations and to provide some insight suggestions for them to establish the systematic decision-making valuation.
Keywords/Search Tags:Venture Capital, Real Option, Decision-making Valuation
PDF Full Text Request
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