The Feasibility Study On The Establishment Of C Venture Capital Fund

CH is a traditional large-scale household appliance listed enterprise,however, this industrial environment has gone through a tremendous change in the past few years. CH desire to complete the transition from conventional hardware manufacture to content and service supplier based on hardware. Otherwise, it will face the challenges from culture, technique, talents and others during the transition, and result in new business transition not good as expected. CH decide to set up Venture Capital Funds(VC), to invest up-stream and down-stream of the intellectual industry, to build intellectual industry Eco-chain, and to utilize capital tool to attempt new business development and strategy transition.Emerging industries venture capital fund is guided and established by government which aims at stimulating 7 series strategic emerging industries development including new generation IT and guiding capital be invested into related field during early and middle stages. The capital is invested and guided by the government, participation of social capital and operation according to the market mechanism. As the emerging industry venture capital fund has the same appeal with CH, as well as CH plan to associate with professional investment organization, it will establish a kind of venture capital guidance fund which focus on new generation IT field.This essay takes CH venture capital fund project as instance, utilizing feasibility method to demonstrate project’s feasibility from following aspects: project background, project implementation environment, project organization form, project programs, project operating mechanism, project investment earnings and etc. Firstly, it has introduced the situation of the industry which CH involved in, and declared the necessity of venture capital fund establishment, as well as stated the feasibility study theory and content. Regarding the feasibility demonstration, firstly it has proved the supportive policies and venture investment law regulations of the state in strategic emerging industries, from project’s environment, and the good development prospect in project investment field.Secondly, it has demonstrated the model of the venture capital funds establishment.Regarding the aspect of specific program establishment, it emphasizes on demonstrating the state to guide fund’s effect and team management situation. In respect of fund operating, it emphasize on project investment process, project retreat channel, and incentive system 。At last, it also demonstrates the project’s feasibility through investment-benefit analysis. Research output has provided important basis for CH venture capital funds establishment, and it could be used as reference for other companies which plan to set up such kinds of fund project as well.