The Influence Factors Of Angel Investor's Project Selection

The establishment and development of SMEs needs financial support,the lack of funds has become the bottleneck for the establishment and development of enterprises. Thus,the venture capital institutions gradually emergying,providing new financing channels for venture enterprises.In recent years, scholars have found that venture capital institutions to help SMEs start-up is very limit ed,because venture capitalists will invest more funds in the latter part of the development of enterprises,angel investment is relatively ideal investment for initial development of the enterprise. However,since Angels generally invest in early stage,facing high risk,so the angels not only need to predict future returns, but also need to estimate and judge the existance of risk.In fact,in order to avoid high-risk,must start from the project screening stage.Based on this,this paper studies the key factors of angel investor project selection ,and strive to establish an objective system of influence factors.In this paper, we use foreign literature to study the selection of angel investors, combined with the case study of China's active angel investors, select the factors affecting the choice of angel investors. And then through the questionnaire survey method to understand the degree of importance of each factor when investors choose the project. Through exploratory factor analysis and confirmatory factor analysis method to reduce the dimension of all factors, 7 common factors were extracted, according to the common factor between extraction and investment effect evaluation do regression analysis to determine the influence factors of angel investment project selection The influence of the various factors from high to low is: the entrepreneur's comprehensive ability, entrepreneur quality, project characteristics, company structure, product characteristics, market characteristics and product development stage. In addition, according to the questionnaire survey results of survey of preference of the industry,using the single factor variance analysis method to determine the different preferences of angel investors whether there are significant differences in project selection factors, the study found that different industry preferences of investors on the influence factors of the extent of the difference. Finally, according to the results of factor analysis and regression analysis,determines the angel investment strategy.On the one hand this paper empirically analyzes the influence factors of project selection and the importance of each factor ,and to determine the angel investment strategy; on the other hand, angel investors can compare their own investment decisions, improve investment process,reduce the blindness of investment decision and investment risk, improve the angel the investment market efficiency, promote the further development of China angel investment market.