Analysis On Optimizing The Risk Control System For A Venture Capital Company

As a new way of financing, venture capital plays an important role in promoting the technical innovation and the development of high-tech enterprise. After the opening of Growth Enterprises Market in2009, the venture capital industry developed rapidly. However, because of lacking the investment experience and professionalism, many venture capital companies with only small-sized funds have lots of problems in risk control system. And the funds are not invested to the companies which really need it and have a prospective future. So, optimizing the risk control system is a must for these venture capital companies.This paper is based on A venture capital company. On analyzing the risk control process of investment in A company, we find many problems in the system. Also we analyzed the courses which lead to these problems. Then, this paper use life cycle theory, information asymmetry theory and enterprise risk management theory as the theoretical foundation to optimizing A company’s risk control system. The paper sets the goal and principal for the system, makes improvement for the organizational structure, establishes institutions, builds up risk evaluation model, and makes an effective control for the investment procedure.