Venture Capital Risk Assessment System And Model

Venture Capital (VC) plays a positive role in economy prosperity and industry promoting,especially their great creativity and robust on upgrading current economic structure. Usually, mature VC Investment activity comes along with an exuberance economic growth rate. VC is designed for the early development and expansion of young firms. Venture capitalists invest in most potential start-ups using risk analysis, risk assessment, and risk control as well as the theory of management, providing them with professional advice and business know-how in order to sale them later for a high profit and enhance their success ratio. Hence VC Investments covered the gap between the inherent risks and conservative mechanism of traditional investment. Although China VC Investments have experienced stronger growth over the last decades, the level of quantity and quality are still much lower compared with developed countries. It is quite necessary to strengthen systematical research and exploring a suitable model for us, especially in risk assessment and risk control.This thesis based on the theories of investment, management and other relevance, using comparative analysis and systematic analysis to discuss how to establish a suitable risk assessment system and model for our current development. The high speed of Chinese economic growth and huge opportunity of consumptions has raised a new round of VC Investments. The thesis first elaborates those fundamental theories, then, introduces related studies home and abroad, and points out the existent problems and reasons, followed by how to establish our own VC assessment framework according to case study of Xiecheng.com which has already IPOed and 8848.net which original team has been dismissed. Both companies are supported by IDG Technology Venture Investment. The empirical analysis of start-ups and institution helps to build up a model to exam risks of the two start-ups'with artificial nerve network. At the mean while, VC organizations should also emphasize its interior tissues and management so as to enhance their working efficiency. With initial theory study of risk assessment and evaluation of start-ups, this thesis aims at making a reference to better risk control for decision-making organizations.