Empirical Research On Financial Performance Of Venture Capital Firms

Venture capital is a interest game between investors,venture capital institution and invested company,which is a kind of financial innovation. This model plays an important role in promoting the capital flow of the economic market, the development of high-tech industry and the perfection of the financial system. In current economic environment,in order to support innovation and entrepreneurship activities,our government requires a lot of capital investment,which provides a good opportunity for the development of venture capital.At present, the development of venture capital industry in China is in full swing and becomes more and more extensive.The enterprise service,cultural media, e-commerce and mobile Internet have become important investment fields. In addition,venture capital flows fast, and the valuation of investment projects are also more and more rational. So venture it is gaining more and more attention from theoretical and practical circles.Venture capital institution, is an important link between venture capitals and risk projects. As the venture capital started late in China,the process of academic community researching on venture capital institution is still in the exploratory stage. The main research focus on the operational mechanism of venture capital institution, internal governance and other aspects,but involving few in the specific financial performance of it. In view of this, the article chooses the venture capital company as the research object, carries on the empirical research from the finance performance appraisal angle. And it is helpful to know and analyze the problem of venture capital company, and to guide the operation and management of it.Firstly, based on the literature review, this paper studies the characteristics of venture capital and venture capital firms, and builds an index system to evaluate the financial performance of venture capital firms from four aspects: fund raising ability, operating ability, profitability ability and risk management ability. Secondly, the paper analyzes the sample data based on factor analysis,which includes extracting the common factors,writing out factor expressions and evaluating the financial performance of the selected companies according to these factor expressions. Thirdly, the paper calculates the weight of the index by entropy method,which can highlight the important aspects of evaluating the financial performance of venture capital companies.Finally, the paper writes out a comprehensive score expression and calculates the comprehensive scores of the financial performance of sample companies according to it, and ranks them. Overall, this paper has established the index system and carried on the empirical research,which makes the evaluation of financial performance for venture capital firms more concise, convenient and accurate, and also has the function of warning the risk and discovering the problem of venture capital.in t, this e end ,the paper puts forward the specific measures and what problems should be paid attention to in the implementation of the financial performance evaluation system, mainly on the financial risk management.