Risk Investment Project Evaluation, Research, And Governance Mechanisms

Venture capital started in China in the middle period of 1980s and was really established at initial stage of the 1990s. But it develops swiftly and violently, has already reached considerable scale till now. But there are still a lot of questions that are restricting the development of the venture capital. Our government can't establish good environment for the development of venture capital, many current policies and laws are not suitable for the operation that the venture capital needs. In the respect of concrete operation such as investment assessment, project supervise, value added service provided, our country fails to establish the system of normal and effective operation for venture capital industry and it exits more subjective judgments. So, the study on venture capital has been the focus and difficult point of the present research. First of all, this paper systematically reviews the existent research on assessments of venture capital investments and governance system of venture capital contract. In respect of governance system, this paper basically introduces the present research on venture capital contract aboard and makes a detailed comment on the content of empirical work of venture capital contract, including governance system and provision allocation of venture capital contract. On the other hand, we not only respectively make a comparative study on valuation criteria system and characteristics of venture capital market among some countries and areas, but also explain briefly the resent research on venture capitalist decision-making, introducing the method used to studies decision-making with actuarial models on the basis of Social Judgment Theory. Secondly, the theories about venture capital contract and its governance system are used to analyze and discuss investment process of high-technology project done by one of domestic state-owned enterprise. We pointedly inspect the situations of investment assessment, decision-making, the structure of security and board, incentives system and project supervise, point out its limitations of the investments bringing forward some correlated suggestions. Thirdly, this paper makes a detailed statement and discussion in venture capital projects'investment assessment and decision-making of Electronics and I.T. Industrial Development Fund, explains what it is different from professional venture capital institutions in investment purpose or investment mode, and presents the propositions...