Project Risk Evaluation Based On The Venture Capital Project Review Decisions

Venture capital is the dream for work in American, the footstone of "silicon legend ". It promoted sustainable prosperity of American new economy. The new power of venture capital must be introduced if our industry structure is to be adjusted and economy is to be shifted as well high technology is to be developed by our government. With venture capital rising in our country, various problems in practice show up. Because the characters of venture capital are full of high risks and high rewards, the important work of the venture capital management is risk management. Since the key problem of risk management is the systematic integral of risk recognizing and evaluation. Therefore, the paper is started from specific operation of venture capital combined with the theory of risk evaluation, a set of suggestion is put forward, which is about the operation of evaluation of venture capital project and could resolve some practical problems.While studying the high-technology project and the implication of venture capital, the high-technology character of venture capital project is cleared. On the basis of deep researching the procedure and characters of venture capital project decision-making, further according to the key factors, such as the enterprisers, the project potential and the real strength of enterprise, when venture capitalists appraising venture capital project and making decision. Through studying the implication of risk and defining the risk of venture capital project, all kinds of venture capital project risk is recognized. In the case of applying the method of the index factor, a venture capital project risk evaluation index system is set up on the basis of project appraising and decision-making. In the index system, the general risk factors are classified and studied in detail in the light of the three characters of project appraising and decision-making. Thus the index system would be used easily and accorded with reality. In view of the characters of venture capital project that lack of enough statistics data and original normative information, the method of Delphi that confirm various index ratio is used. And on this basis illegibility mathematics model is applied to evaluate project risk. Finally, a case is analyzed according to the result of the paper study.Through the studying of venture capital project appraising and decision-making, a project risk evaluation index system is set up in this paper, which is fit for our country reality. And an easy risk evaluation method is studied. To venture capitalists appraising project and making decision, it has a quite strong practice indirection meaning.