A Study On Venture Capital Evaluation Model Of The Internet Of Things Projects

Venture Capital plays an increasingly important role in the economic and social development. It’s the bridge between new high-tech enterprises and capital. The change of the economic situation makes the government and society aware of the importance of adjusting the economic structure. And the government proposed timely a "12th Five-Year Plan" about the Internet of Things, and raised the IOT as national strategies. More venture capital firms follow the policies’ guidance to pay more attentions to the projects of the IOT. Many of the IOT business have just started, which were very risky. And many venture capital firms were very careful when making investment decisions. How to evaluate an IOT project, to reduce the risk, to improve the success rate became the important issues before investing.After study the literature and experts’ surveys,10factors, which affecting investment decisions were identified in order to help decision-makers to recognize the risk. An index system was established and used for evaluating projects, reducing the subjectivity and blindness. On the basis of the research results, combined with the experience of experts and the actual situation, one IOT project investment evaluation index system was built which includes six main criteria layer and30sub-criteria layer. Then analyzed briefly the applicability of several methods of project evaluation, and use the Linguistic and Set Pair evaluation methods to establish evaluation model. Selected specific cases to test the feasibility of the model and assess correctly the value of the projects. Finally, summary and outlook the whole paper, and made recommendations for venture capital firms to help improve the investment decisions on IOT.