Studies On The Evaluation Of The Venture Capital Project

Venture capital is important support system of knowledge economy, high tech achievement city site and industrial. In order to reduce the investment risk, we must estimate the risk and the benefit before investment accurately, and manage it effectively after investment. Therefore, it is necessary to establish a set of appraisal system, apply science method to evaluate the risk and the benefit of the venture capital project, and then provide the basis for the venture capital organization to make decision.Based on the results of predecessor, this paper conducted some tentative research on theory and appraisal methods of venture capital projects. Firstly, the paper summed up the basic concepts of the venture capital, introduced the role of the venture capital to economic development, analyzed the venture capital operation process, and pointed out the appraisal is the important link of venture capital. Then the paper introduced the content, the characteristic and the flow of the evaluation of the venture capital project. On the basis of extensive reading, referring to the formulation principle of appraisal index system, the author set up the index system of risk evaluation for the venture capital project which at Expansion stage. At the same time, set up the benefit valuation system for the venture capital project according to the national project evaluation criterion and method of Ministry of Finance. As to the question of man how to use the appraisal data of the risk and the benefit for investment decision-making, the paper proposed the method that analysis risk and the benefit comprehensively. Using this method, different venture capital investor can carries on scientific invest decision according to themselves preference. On the basis of analyzing current methods used usually to asses, it is the first time to apply GA—BP neural network evaluation method into the venture capital project appraisal domain, and providing the ideal evaluation method for venture capital project evaluation. Finally, using the appraisal theory and method which introduced in the paper, it is succeeded to use the Matlab language to complete the programming which is used to evaluate the risk and benefit of the venture capital project at Expansion stage. According to the records of the experiment, it shows satisfactory results.