Research On Evaluation And Selection Of The Venture Capital Firm For High-Tech Projects

The21st century is the era of knowledge economy, and high-tech industry is animportant pillar industry of this era. Developing high-tech has important practical significancefor the promotion of economic development and social progress. Many countries around theworld have taken various policies and measures, actively promoting the development of thenational high-tech industries. Our country’s12th Five-Year Plan outline clearly pointed outthat in order to promote high-tech industry to be bigger and stronger, it is essential to nurturethe development of strategic emerging industries, and strengthen supportive fiscal andfinancial policies for high-tech industry.Only if high-tech innovations be combined with financial resources can they betransformed into the social productive forces. However, the Government’s support is limited,and because of loans mechanism’s unsound, the transformation rate of high-techachievements is much lower than developed countries’. Therefore, to improve thetransformation rate of scientific and technological achievements, we must make full use ofsocial capital. Venture capital firms have a strong capacity in raising social idle funds. Andalso, venture capital for high profits chase, high-tech projects with high-yield, the two are of agood fit. Venture capital is an ideal way for high-tech projects’financing.When screening projects venture capital firms must follow certain criteria in order toraise the probability of success. In this paper, theories about high-tech projects and venturecapital are firstly reviewed, and then, on the basis of research achievements of risky projects’evaluation index system both at home and abroad, we establish an evaluation index system ofthe venture capital for high-tech projects from two aspects: risk and benefit. Whendetermining the weight of each index, a method of triangular fuzzy numbers is used to lowerthe subjectivity of the analytic hierarchy process method. in this way, an expert’s score toevery index is an array containing three numbers, which respectively represent the mostpessimistic scoring, the most likely scoring and the most optimistic scoring of the expert.Then we describe the steps using fuzzy Analytic Hierarchy Process based on triangular fuzzynumbers. In the end, we take a venture capital firm that is screening among three differentprojects as an example, show how a venture capital firm makes an investment decision in thecomplex and ever-changing environment according to the evaluation results and three basicprinciples when making investment decisions: the risk level lower than its threshold, the risksand benefits matching and dynamic decision-making.