Risk Of China's New Materials Industry Of Venture Capital

New materials industry belongs to high-tech industry in which field innovation isvarious, but the industry has the high investment, high risk and high return characteristics.In China, banks and stock markets and other traditional means of financing for the industry,neither adapt, nor have suitable thresholds. The insufficient investment contributes to theslow process of the commercialization and industrialization of new materials technologyachievements. As a new financing way, venture capital adapts to the characteristics of thenew materials industry, and the increasingly growing provides a rare source of funds andopportunities for the development of new materials industry in China.Therefore, by using a combination of normative analysis and empirical analysis, thispaper starts from identifying main risks of each new materials industry life cycle, andissues the questionnaire to the investors for knowing their risk attitude of the industry,finally comes to a conclusion of the necessity of the industrial risk research. Then, thepaper establishes the risk assessment model of the industry after the analysis of the chiefrisk factors by using two layer fuzzy analysis theory. As an example, the paper selects atypical enterprise to distinguish its level of risk factors and the type of risk of the wholeenterprise through the using of expert questionnaire and the established model. In the end,the research extents to the industry from a company, analyses the common risks of theindustry, raises the measures of controlling and draws the industry investment strategy:circulative and combined investment, in order to the greatest extent to decentralize theinvestment risks and realize capital appreciation.