Research Of Financial Risk Control In The Operation Of Fortune Company’s Venture Capital Fund

With the appearance and development of venture capital, the United States andeven the world enjoyed a great prosperity in economic and rapid development intechnology, and it caused social attention gradually. Today venture capital take theform of venture capital fund, as a new tool of financial innovation, its innovation anduncertainty make venture capital institutions face with many potential crises, financialrisk is one of the significant and direct threat during these various potential crises,which run through the whole process of venture capital, including financing,investment and exiting. If the financial risk cann’t be managed reasonably, it willaffect the actual effect of investment operation, and even leading to the failure ofinvestment. Therefore, from the perspective of venture capitalists, they should fullyanalyze the risk factors that may exist in the operation of venture capital fund, takingcomprehensive control measures to reduce financial risk, to realize investment gains.This paper studies the control problem of financial risk in the operation of theventure capital funds by the form of case. The article firstly introduce the basic theoryof financial risk control in the operation of venture capital funds, then combined withthe practice of Fortune Company, a detailed analysis of the financial risks as well ascontroling measures have been taken from the three aspects. After analysis we foundthat Fortune Company have some financial problems, such as imperfect financingsystem, limited financing channels, unscientific valuation of investment projects,single investment tool and selection confusing in exit timing and exit channel, and soon. According to the problems, this paper give some improvement measures.Including establish business enterprise financial risk pre-warning mechanism; Takingthe theory of real option to settle the decision-making and the initial scale problem;Taking specific management measures to strengthen the control of slight financialrisks in the processes; Perfecting camera governance mechanism of venture capitalfinancial risk control; Giving full play to the role in support of the Government. Thefinancial risk control measures and the improved methods about Fortune Companyhave universal applied significance, so other venture capital organizations can learnfrom it according to their own situation.