| Venture Capital Industry is contemporary Chinas most potential industry, and VCconcentrates in investing TMT industry, financial services industry, energy industryand traditional manufacturing industry. This article focuses on analyzing influencingfactors of VC investment earnings in TMT industry. TMT industry meansTelecommunication, Media, and Technology. In that role, Media industry works as abridge that connects telecommunication and technology. Besides, TMT industry isalso closely related to the development of network and high technology. In commonsense, it is not only a technological industry but also a strategic industry supported bygovernment. TMT industry is highly associated with the entry of venture capital,which works as a catalyst in pushing the development of TMT industry.The initial purpose of this study is to verify the main factors that led to thereturns of Venture capital investment in TMT industry. Besides, the intention of thearticle is to provide theory reference for improving the successful ratio of venturecapital and to push TMT industry to grow in a faster rate. The research fields includeindustrial economics, finance and venture capital. In short, this article is not onlycombining industrial economics theories and risk investment theories, enriching anddeveloping the theories, but also providing analysis of the phenomenon in the realeconomy. In a word, whether from the perspective of theory or real economics, theessay is meaningful and significant.In the process of writing this article, the author establishes and selects therelevant indicators as reference variables in the empirical analysis, according to thetheory of VC theories and related factors. On this basis, the author combines thefactor analysis theory and the factor analysis method, collects data (2005--2013) toestablish the relationship between the independent variables and the dependentvariables, finally obtains following conclusions.Initially, major influence factors of venture capital investment returns in ChinaTMT industry include selecting industry factor, investment region factor, investmentperiod factor, investment scale factor, enterprise quality factor, syndication factor and PE experience factor.Besides, the author uses specific variables to represent the meaning of relevantfactors. As a result, the consequences show that those factors have obvious connectionwith the VC investment returns.Moreover, through empirical analysis, the results show that the maindeterminants are investment scale factor and enterprise quality factor. The larger theinvestment risk, the higher the quality of the portfolio companies, venture enterprisesare likely to own high return ratio; Joint venture determines the investment scale ofventure capital to some extent, thus joint venture investment and risk factors show apositive correlation with the returns of VC programs; Venture Capital period andsuccessful venture capital is presented positive correlation; The investment returnranked from top to bottom in China TMT industry is telecommunication industry,media industry and technology IT industry; VC investments in first-tier cities areprobability have higher return ratio than those investments in non-first-tier cities;venture capital investment experience is not necessarily connected with the VCreturns.Relative to the previously existing researches, new insights in this paper includeanalyzing investment successful factors within TMT industry, rather than analyzingthe entire Chinese investment; Introducing targeted enterprise factor analysis, whichmeans to analyze the relationship between the target enterprises and the VC returnration. Consequently, the results are more probably to reflect the real economy. |
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