Appraisal Of Venture Capital Project

Venture Capital is an equity investment behavior that the venture corporations invest in high-tech project along with companies, and take part in venture business'management and operation to get high profit from the capital. The appraisal of project plays an important part in the process of Venture Capital, and it relatively objectively reflects the value and potential of the venture business, which offers a valuable basis for the final decision.Through analyzing Venture Capital's basic feature and process, the paper tries to make a research on the methods of appraisal of the Venture Capital project with the theory of Financial Management, and design a series of indexes to balance the venture business'risks and benefits. Firstly, in the article, it analyzes the basic concept of the Venture Capital, which involves Venture Capital's connotation, features, objects, investors and process. It strengthens the importance of appraisal of Venture Capital in the analysis of Venture Capital's process. In the second part, it analyzes the concept and features of appraisal of Venture Capital, and promotes the relative Financial Theories which could be applied in the appraisal of Venture Capital. It involves the Capital Asset Pricing Model, the corporation value evaluation theory and the Option Theory. Based on these theories, the writer raises according evaluating methods in the third chapter, and has paid attention to the effect of different period of venture business on the appraisal of Venture Capital. Finally, it concludes a system of Venture Capital Evaluation Indexes to evaluate the advantages and disadvantages of the project.