Research On The Impact Of Venture Capital Network On Investment Performance

Venture capital is also called risk investment.It is an financing mechanism focusing on venture capital institution.Venture capital process bear not only the function of the financing,but also the flow of the knowledge?skills and information.Venture capitalist choose venture capital institution as capital agent that responsible for investment activities.and venture capitalist get benefits according the contracts.The two sides established the first layer of principal-agent relationship for venture capital activities.Venture capital firms choose entrepreneurial companies with potential for growth in the market,and then put money into target enterprise.The manager of the enterprise is responsible for the operation and management of funds.Both constitute the second layer of principal-agent relationship of venture capital activities.The capital flows in the chain of entrepreneurial investment activities constructed by entrepreneurial investors,venture capital institutions and entrepreneurial enterprises.The funds invested by venture capital firms are in the form of equity capital.The venture capital institution is the shareholder of the company to participate in the operation and management of the company.And finally choose the right way to withdraw the capital from the venture capital.The venture capital firm returns the value added capital as agreed to return to the investor,realizing the reverse flow of venture capital in the chain of venture investment.The concept of venture capital was first proposed in China in 1984.After many ups and down development,new opportunities are emerging at this stage.Under the call of "mass entrepreneurship and innovation",the development of China's entrepreneurial enterprises has ushered in a new wave.All-round and multi-industry innovation and entrepreneurship has increased the demand for capital while expanding employment.Under the promotion of "Internet plus",the expansion of the original industry and the emergence of new industries promoted the development of venture capital.Since the whole flow process of venture capital investment is the process of capital realization of effective increment,the final reverse flow value of venture capital fund is especially important for the whole investment chain.In addition to the liquidation of failed enterprises,other forms of effective capital withdrawal include listing,equity transfer and merger and acquisition.With the establishment of a multi-level capital market in China,the opening of the gem and the improvement of the small and medium-sized enterprise stock transfer system to ensure the realization of the most important link in venture capital chain,thus provides an opportunity for the large-scale development of venture investment.Venture capital activity is characterized by high yield and high risk.Therefore,in the process of investment,we need to seek cooperation to reduce the risk.The network of mutual cooperation between each other is called the syndication network of venture capital and is divided into two categories,narrow and broad.In the narrow sense,the syndication network refers to the cross-network built by the inter-bank cooperation of venture capital institutions.The generalized venture capital syndication network refers to the complex network established by venture capital institutions and other stakeholders such as peers and other intermediaries.The ultimate goal of venture capital is to realize capital appreciation,and the realization of value-added is the guarantee of effective exit of funds.Therefore,it is of great theoretical and practical significance to study how to effectively exit investment performance.First of all,this article embarks from the domestic and foreign existing literature results,tidiness,determine the research train of thought,from venture capital syndication network form reason,venture capital syndication network properties and its measure method and the function of the venture capital syndication network three aspects of existing research results,to determine the research Angle to the venture capital syndication network structure,network location and network relations from three aspects.Secondly,according to WIND database of 2007-2016 China venture capital events as sample,will be involved in the venture investment institutions,on the basis of the relationship between the venture investment organization and build relationship matrix.This paperintroduces the generated adjacency matrix into UCINET software for the quantitative analysis of social network,and analyzes the startup investment syndication network through the research direction and research index.Third,based on the success of the venture investment organization is dropout rates as explained variable,to center,center for structural holes and eigenvector as explanatory variables,the establishment of venture capital institutions time as control variables to construct model,and finally through empirical analysis it is concluded that degree of venture capital syndication network center,close to the center and middle degree and the higher the effective size of the network,the success of the venture investment organization higher dropout rates.Finally,based on the network analysis and the empirical results from the main body of venture capital syndication network involved in network selection,government role and market environment,investment withdrawal mechanism and so on Angle put forward the corresponding countermeasures and Suggestions.This paper for venture investment network impact on the investment performance of the research possible innovation points as follows:(1)using social network analysis samples,choose 1242 venture investment institutions in the 2007-2016 investment event as sample,and using social network analysis method to quantify the network indicator index analysis of the present situation of our country venture capital syndication network.In this paper,the network of venture capital syndication is analyzed.The social network analysis method is divided into three research angles:network structure,network location and network relationship.Based on the analysis of these three angles,this paper conducts a comprehensive three-dimensional analysis of China's venture capital syndication network.