Research On Venture Firms’ Financial Performance

Venture capital has played a significant role in speeding up the commercial achievement of science and growth of innovative enterprise, enhancing the national innovation ability,competitive advantage of nations and national economic development. China is facing the transformation of economic development mode and developing strategic new emerging industries, which will bring great opportunities for the development of venture capital industry.From the perspective of enterprise life cycle,this paper researches whether venture capital can put significant influence on the performance of venture enterprises. And founds problems in the process of development of the venture capital industry and present suggestions, for avoiding the risk in the development process of the industy and promoting the healthy and rapid development.This paper starts from the concept of risk investment, makes analysis on the incentive and restraint mechanism of the risk investment in venture enterprises, and explain the mechanism of venture capital risk enterprises. On this basis, focuses on the impact of venture capital investment enterprises from the perspective of the life cycle on the risk of enterprise performance. Using the small and medium-sized enterprise share transfer system of listed companies and the growth enterprise market of listing Corporation as the research object, through the relevant variables descriptive statistics, correlation statistics, regression of risk capital and venture enterprise such as the proportion of equity, corporate governance, financial indicators were analyzed.This study shows, the performance effects of verture capital put on companies from NEEQ are significant, indicated by the venture capital backed companies have higher revenue growth rate, total assets growth rate, net assets growth rate than non-venture backed companies, but the effects on net profit growth rate and return on equity are not significant. And the effects on growth and efficienty of operation of verturn capital put on the companies of GEM Board are not significant. Only have significant effects of the scale of companies. The venture capital backed companies have more total assets and net assets than that of non-venture capital backed companies. In addition, the stock incentive plan has significant positive effects on growth and opration efficiency of companies from GEM Board, but there are very low relevance between verture capital and stock incentive plan.The main innovations of this paper are:Study whether venture capital put on significant positive effects on the performance of venture enterprise, based on the analysis of post-investment management and guidance, and venture enterprise performance analysis. Most of researches about venture capital in China are focus on the companies from GEM Board, this article study on the companies form the NEEQ. This paper study the post-investment stage and exit stage after IPO of venture capital,and study on different development stages of venture enterprises.