Venture Capital Participation In Entrepreneurial Performance

Venture capital is known for its professional and efficient services. With high-risk and high potential revenue, VC has been popular for decades abroad. It also has been hailed for its positive role in promoting industrial development. As a combination of Industrial and financial investment in new financing mode, the VC history in China is short, but with rapid development. In the past decade, both the amount of investment and financing, or participating agencies, presented a geometric growth. This rapid growth has also led to fears. Whether venture capital is gambling, or still maintains a positive interaction with business growth?The study sample consists of GEM listed companies. Compared to the mainboard and SME board listed companies, the influence of VC to such enterprises is more obvious. Firstly, this paper describes the participation and market performance of VC. The study found that in the GEM, VC-backed companies has increased year by year, and now more than6percent companies are VC-backed. The VC is paying more attention to the western region and emerging industry, like new energy, new materials.This paper’s main idea is comparative analysis, through a comparison of the data of the two types of corporates with different VC background. First needed to be addressed is the evaluation of corporate performance. Combined with the risk characteristics of entrepreneurial enterprises, this paper selects23of the evaluation. Besides the traditional financial indicators, this paper also introduced non-financial indicators, like the sales proportion, the proportion of highly educated personnel. By means of factor analysis, ultimately grouped into seven evaluation factors.After enterprise performance ratings, according to different factors and industry, the results show that the participation of VC do affect corporate performance. And it’s most evident in the overall corporate profitability and high-end talent input. And we find that with the deepening of the degree of involvement of the investment institutions, the results for the overall performance of the manufacturing enterprises decreased, however.Finally, we made some suggestions, according to empirical results and the latest development of the VC industry, to promote the rapid development of venture capital industry.