A Study On The Establishment Of Venture Capital Enterprises Selection System For The Chinese Government's Venture Capital Guidance Funds

In the past two years,with Premier Li Keqiang's proposal of “mass entrepreneurship and innovation”,China has witnessed exponential growth in its guidance funds and the scale of venture capital companies.According to the statistics of Zero2 IPO Research,China has established 297 new guidance funds in 2015,with an increase of 183% year over year;and the newly increased guidance funds have amounted to about 1.5 trillion yuan,up 422% over last year.Guidance funds have become the largest institutional investor for venture capital funds.In the meanwhile,new venture capital funds are mushrooming,particularly many of them established by partners to numerous well-known venture capital institutions.With this background,the means to select venture capital enterprises for government guidance funds have become an important research topic,while the venture capital enterprises evaluation system based on historical performance does not apply to the great number of newly established venture capital funds.Therefore,the establishment of a venture capital enterprises selection system with scientific decision-making,controllable risks and highly efficient flows can both achieve the policy objectives of guidance funds and balance the demands of venture capital enterprises for market-based operations.By studying the relevant references and considering the practical work experience in the past,the author expects that this paper can provide some references and guidance on the investment work of guidance funds by establishing a venture capital enterprises selecting system for guidance funds.Accordingly,by sorting out the basic quality requirements that outstanding venture capitalists should carry,processing the reverse research for the managing experience and the methods used to evaluate the core team members in both foreign and China's venture capital enterprises,and combining the special duty that government guide fund carries and their functions,this article designs “10 essential factors-evaluation model” for the management team of venture capital enterprises.From 10 essential factors in two aspects-basic quality and experience requirement of team members,this model could exam an objective evaluation of the management team.Since this model is an evaluation model used by the guide fund before making investment,this article is going to prove the strong correlation between the evaluation results of this model and the investment performance ranking of venture capital enterprises in 2016,by correlation analysis and logistic regression analysis.