Assessment Methods Based On The Risks And Value Of The Risk Of Investment Projects

Since the first session of the Ninth CPPCC brings forward an undertaking "No.1st" project about venture capital development in 1998, venture capital industry in China has been booming in recent years. As a new institutional arrangement to make up the gap of venture equity capital, venture capital has become the most powerful "booster" of the scientific and technological innovation and industrialization.Although Affected by the financial crisis venture capital business has emerged in the short-term declination in 2009, with the successful launch of the GEM, it can be predicted that venture capital market in china will play an important role in the following years and the amount of investment will return to faster growth increasingly. However, the crucial problem in venture capital operation that how to solve the project selection problem on risk evaluation and to devise the investment plan on return assessment has not well settled.First of all, on the basis of the full absorption of existing research results in and abroad, the paper mainly introduces investment decision-making process. The next in order, the paper summaries the high risk and high return mechanism of the venture capital. The main point of the paper includes two parts, one is in accordance with the Chinese current status and the high risk mechanism of the venture capital to design risk evaluation index system, and use the G1 method for the weight of the risk evaluation index at all levels, eventually projected the comprehensive interpretation of the risk characteristics to investors with a valid reference; the other is on the basis of explaining the applicability of real options theory in investment, connecting with the multi-stage characteristics and high return mechanism of venture capital, make return assessment with the Multi-stage Compound Option Pricing Model.The exploration and research of the paper can enhance the efficiency and accuracy of investment decision-making, in order to promote the development of venture capital industry.