| Media industry has been a key target among those diversified targets invested by venture capital during recent years when China has been opening the media market gradually. As a matter of fact, new media technology was invented while more and more innovative media companies were founded and developing rapidly, and thereby attracted many venture capital investment. As a form of equity capital, venture capital plays a unique role in cultivating innovative companies, especially in accelerating new media industry in our country.At the same time, paper on venture capital specialized in media industry is rare, not to speak of a special evaluation index system or methods on it. Therefore, this paper wants to set up a specialized evaluation index system agreeing with the running of media industry in China when most of the characteristics of media companies are taken into account. On the basis of the research on many popular venture capital project evaluation index systems around the world, we start our research from the core phase of the whole venture investment procedure, which is value assessment. The commonness and the speciality of media companies are listed, and then we analyze the applicability of the universal evaluation index systems on that given industry. The most important part of this paper is to found a unique index system corresponding to the media area which venture capital companies could use as some appropriate technique while they come into the media industry in China. Analyzing the risk and the income, two major factors of the research on a media company, this paper proposes some main indexes that could impact the invest value, and gives them different weighting coefficients to form a new index system. At the end of this paper, the empirical analysis on this evaluation index system is made to test our indexes on two new media websites which successfully absorb the investment from some well-known venture capitals. |
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