Research On The Influence Of Enterprise Long-term Growth Ability By Venture Capital

As the country attaches great importance to the field of innovation,the venture capital investment industry has entered the period of rapid expansion,which means a large number of venture capital institutions of domestic and overseas rise rapidly.The rapid development of the venture capital industry is the great news for start-ups undoubtedly.Well,the investment has reached to 3932 at 2015,which is growth quickly in the past five years.Meanwhile,investment field of venture capital has been extended to electronic commerce,local life,enterprise service and finance.It is the hot field that electronic commerce and local life become in recent years.At present,the venture capital institutions can help enterprises to establish a long-term growth business model and achieve the goal of growth,which become the standard of venture capital institutions as venture capital exert great influence on enterprise.What this paper analysis is whether venture investment has positive impact on enterprise long-term growth from the venture capital effect theory.We analysis the performance of 152 companies by descriptive statistic,prove that the participation of venture capital has positive influence to the enterprise.The article,on the other hand,analysis the impact that the venture capital institution invest the startup in two ways of value-added service and investment together.Besides,we chose 69 companies to analysis by usingcorrelation analysis and multiple linear regression analysis.The paper discuss the influence of venture capital to the long-term growth ability of enterprise from five aspects which contains the stock of venture capital holding,participate in the management,time,reputation of venture capital and joint investment.We can come to the conclusion that it is the positive influence for the long-term growth of enterprise that venture capital institutions joined in the management of startup.Meanwhile,the firm’s net asset will growth for long time but total assets won’t after investment of many venture capital institutions.Finally,high reputation of venture capital institutions,the length of time of venture capital and the proportion of shareholding of venture capital did not play a positive role for the enterprise’s long-term growth.The reason,however,is that the investment projects is still in the primary stage of investment in our country,which not attaches great importance to the capital investment stage.That’s why venture capital did not play important function to the promotion of enterprise value.We want to combine China’s national conditions and the effect of venture capital for the long-term growth ability of enterprise,analysis the way how venture investment affects the long-term development ability of enterprise.Besides,it has the enlightenment function that the venture investment can more effectively improve the long-term development ability of enterprise.