The Study On The Influence Of Venture Capital On The Performance Of Neeq Listed Internet Companies

Has gone through twenty years,Chinese Internet companies still attract international venture capital with their innovative business model and amazing speed of development.According to statistics,in 2015 about 1/3 of the domestic venture capital investments occurred in the Internet industry.However with the valuation of Internet companies has return to rationality and capital market cools down,the growth logic of Internet companies supported by venture capital received widely attention again.As the growth mode of Internet companies differs from traditional industries,we still have few studies about the influence of venture capital on the performance of Internet companies.This study samples 182 NEEQ listed PC platform based Internet companies,studies the influence of venture capital on the performance of companies and further explores the impact of various investment attributes on the VC-backed Internet companies.Based on the relevant theories like Internet valuation,growth mode,investment logic and website influence,this paper firstly establishes the evaluation index system of Internet company performance which includes financial index and intangible assets index,then builds the concept model about the influence of venture capital on Internet companies.Based on the concept model,this paper puts forward the hypotheses about the impact of venture capital on the operation,profitability,growth ability,quantity of intellectual property and influence of website.In the empirical study,this paper firstly analyzes the characteristics of Internet business and the impact of VC on company performance through statistical description,mean comparison analysis and correlation analysis.Then panel regression model and cross-section regression model are built respectively for financial data and intangible assets data.In this paper,we use two kinds of dependent variables to verify each hypothesis,and we try to estimate the results with robustness and persuasion.Through theoretical analysis and empirical research,we have the following conclusions:First of all,venture capital has positive effect on the growth ability of Internet companies,the number of trademarks in intellectual property and website influence,and the latter two are significant.However venture capital has a significant negative impact on the profitability of Internet companies,and no significant impact on operational capability.Secondly,the paper finds that the higher the venture capital shareholding ratio,the worse the profitability of Internet companies;the higher the reputation of venture capital,the stronger the growth ability of enterprises,the more the number of trademarks,and the stronger influence of the website;The higher the cumulative investment amount of venture capital,the worse the profitability and website influence of Internet companies,but the latter is not significant;And Internet companies will have more intellectual properties(brands significantly more)when venture capital have longer stock holding time.From the conclusion of this paper,we can find the general feature of poor profit and fast growth of internet start-ups.The intangible assets,platform popularity and website traffic play an important role in the overall performance of Internet companies.VC's positive impacts on Internet companies are mainly reflected in the intangible assets,but the realization of this process requires a long time.Venture capital and large-scale investment did not significantly improve the profitability of Internet companies and Website influence,maybe VC-backed firms adopt a more radical expansion,but the cost of expansion is higher than revenue growth,"Cash Burn" risk is especially strong.