| The selection of projects is of especially great importance in the series of decision-makings for venture capitalists. It is critical to the success of the investment and exerts profound influence to the return rate of investment As the selection of projects is decided by the evaluation result, the reliability of the evaluation directly influences the propemess of the decision, this influence the efficiency of the investment. The dominating practice of venture capitalists that make decisions without any aiding models sums down to low intra-judge reliability and low inter-judge reliability, and it also leads to incapability in handling complicated projects. So it is necessary to establish some formal projects evaluation model to guide and improve the venture capitalists' decision-makings. That accounts for why I choose this research program.There are five sections in this article:In the first section, several fundamental concepts are defined and emphasis is especially given to the concept and characteristics of the Projects Evaluation of Venture Capitalist. Then the function and necessity of Projects Evaluation of Venture Capitalist is analyzed. The research methods are also given at the end of the paper.In the second section, some popular models of Projects Evaluation of Venture Capitalist are presented. They are the model of Tyebjee and Bruno, the New Venture Template of Ronald K. Michelle, the model used in Taiwan and the one given by Sun Youjie etc. After comparison, the advantages and disadvantages of each model are discussed.The third section is the key part of this article. In this section, a brand new model, namely, the Competitive Advantage Analysis Model, is established with the framework of Michael E. Porter's Competitive Advantage Theory, which also contains the excellent essence of the models introduced. This model handles the evaluation of the project in two respects, that is, the Industrial Attractiveness perspective and the Competitive Advantages of the Mew Venture, To evaluate theCompetitive Advantages of the New Venture more exactly, projects are classified into eight categories, and different factor system is provided tor each category. In the end, all these different factors are integrated into a uniform model and synthetic methods are provide too.In the fourth section of the article, 20 cases are chosen to examine the reliability of different models. Tyebjee and Bruno's model, Mitchell's model and the newly established Competitive Advantage Analysis Model are tested to judge their respective reliability. The result show that Tyebjee and Bruno's model and the newly established Competitive Advantage Analysis Model are more capable in predicting the potential and promise of new ventures. This result suggests that the newly established Competitive Advantage Analysis Model is effective. Comparative research is conducted next to the succeeded and failed ventures, which further demonstrate the superiority of the new model.The last section is the conclusion of the article.There are two innovations in this paper:Firstly, the framework of Michael E. Porter's Competitive Advantage Theory is borrowed in the evaluation of new ventures for the first time, thus build a bridge between the analysis of new venture and matured enterprises. Michael E. Porter's Competitive Advantage Theory is widely used and accepted in the fields of entrepreneurial management, which fully demonstrate its reasonability. It is also applicable to new ventures. It provides a good perspective to understand the long-term profitability and risks of failure for new ventures. It is also helpful for the entrepreneurs to have a better understanding of the industry and cany out appropriate competitive strategies.Secondly, in my point of view, it is difficult, or even impossible to tackle such complicated and important work with a single and universally applicable model. A classification should be made and different factors should be considered for different kind of ventures. In this regards, the ventures are ca... |
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