Seletion For Venture Capital Project

In the process of economic transformation in the new normal, scientific and technological innovation is an important starting point. The venture capital is the incubator of scientific and technological innovation, and the city’s scientific and technological achievements into productive forces. In the "mass innovation, innovation" of the environment, especially should strengthen the development of venture capital. For capital demand side, venture capital is a kind of financing way; for the supply side of capital, venture capital is a kind of investment way. For the entrepreneur, or for the purpose of the venture capital, the venture capital is very difficult to obtain the final victory. For investors, the most effective way to reduce the risk of the project is to reduce the risk. This article discusses how to choose the venture capital project.The choice of venture capital project should reflect the scientific nature, and also reflect the artistic nature. Should pay attention to the regularity of science, rigorous program and new technology. Also want to pay attention to the ingenious and should be modified, flexible strategy and perfect coordination. Science requires us to establish a system of scientific and practical index system to evaluate the venture capital project. The artistic requirements in the choice of projects according to the actual situation to consider the feasibility, can not stick in the mud, lump together.The characteristics of entrepreneurial investment projects with high risk and high return compared to the selection of other projects, venture capital project needs to choose more reasonable and effective selection methods and indicators.Previous studies are mainly three methods, the first one is an index evaluation method.The first evaluation method very subjective, does not reflect the Venture Investment Project Selection scientific.Option Law is the essence of discounted cash flow, both of which depend on the evaluation method and expected cash flow discount rate estimation accuracy.Because of the existing project evaluation methods have one way or another deficiency.So just need to constantly introduce new evaluation methods, and practices. In this paper, the information entropy method to evaluate the venture capital project, I think that is feasible and effective.The main content of this paper is divided into three parts:First part of this paper is an overview of the text, including the definition of venture capital and the effect of the first chapter and the second chapter.1938, Shannon first proposed the concept of entropy. Shannon originally chaotic field of physics describing the system as a measure of the degree of variable variable informatiori.As well as the theoretical basis of the text:Pareto optimal theory, asymmetric information theory and information entropy theory. The application of Pareto theory and the theory of information asymmetry is the reason for the choice of the project. It is the choice that will bring you a different result, so you should choose the best project. Because the information is not complete, so it needs to be chosen, it needs to understand, evaluate and decision. The information entropy theory is the basis of the mathematical model in this paper. The information entropy theory is a mathematical evaluation of the degree of information clutter. To find the most orderly and most effective information.The second part is the construction of the model, the first is to discuss the principles of the model construction, and then the establishment of the mathematical model, and finally to the statistical data, draw conclusions.Data from the questionnaire that first-hand information. The information entropy is mainly used in the matrix of linear algebra, which is used to calculate the statistical data.The third part is the evaluation of the results of the data, and give their own suggestions and some ideas.Venture Capital Project Selection most important factor is the overall quality of the venture capital team, and is the core technology of the entrepreneurial team, followed by the capital and financial indicators, and finally the project environmental and operational management.For capital demand side, venture capital is a kind of financing way; for the supply side of capital, venture capital is a kind of investment way. For the entrepreneur, or for the purpose of the venture capital, the venture capital is very difficult to obtain the final victory. For investors, the most effective way to reduce the risk of the project is to reduce the risk. This paper mainly based on the perspective of venture capital entrepreneur and angel investor, hope can provide the choice of venture capital project basis and our country venture capital development plays a certain role in promoting.