Study Of Angel Investment Valuation Methods

With the development of China’s economy, the continuous adjustment of the industrial structure, and the stream of innovative industries, it brings a lot of emerging industry opportunities. And the domestic angel investment boom also came into reality. The major angel investment funds and individual angel investors have become socially well-known these years. The angel equity investment activities have been increasingly active and played a more important role in the promotion of industrial innovation and development.However, in the actual angel investment operations, a reasonable valuation is very difficult to form a more scientific and rational judgment or quantitative analysis. This is because of the lack of experience and theoretical basis for early cost estimation of the project. The vast majority of domestic and international investment at this stage still rely on accumulated experience in decision-making by the individuals or institutions. The lack of valuation criteria accepted into the system in the industry, resulting that the angel investments industry is very difficult to enter.This article is from the point of view of the actual investment operations. For the need of the ultimate combination of risk-based angel investment control, the author has proposed the innovative design of a set of scientific and rational, efficient and operationally practical angel investment valuation system. And it tries to eliminate the original many subjective factors in the valuation process, the establishment of a relatively objective valuation methodology.The basic research materials mainly come from the American equity investment valuation theory, basic information of the angel investment industry in the course of development of domestic and international investment industry data, investment in public cases, the author of the investment work practice, particularly by CDBA angel Fund.The study is to establish a practical valuation system. It will help the angel investment institutions or angel investors to make scientific and reasonable valuations for the investment projects, and improve the efficiency of investment institutions to facilitate risk control management of the portfolio, lower communication costs in valuation negotiations. It means to make a contribution to the successful completion of the investment activities. There are also inadequacies in the research for lack of domestic statistics and completed cases in the business angle industry. And the research is mainly focused on high-tech investment area.