The Influence Of Government Venture Capital On The Performance Of Start-up Enterprises

Govemment venture capital to a large extent fills the financing gap caused by the intensive emergence of startup companies.Today,government venture capital still occupies a large proportion in the venture capital market There are differences between government venture capital investment and other forms of venture investment in terms of investment objectives,experience capabilities,screening capabilities,and resources,but existing research focuses more on the impact of venture capital on firms.There is little research on the impact of government venture capital on the performance of start-up companies.Therefore,studying the impact of government venture capital on the performance of start-up companies plays an important role in repositioning the government's position in venture capital and in making better use of government venture capital.This article systematically reviews and combs relevant literature on venture capital and corporate performance.Based on this,it uses China's GEM listed companies as research objects,learns from existing research,and measures growth ability,profitability,and corporate market value.The performance of entrepreneurial enterprises adopts multiple regression analysis to analyze the impact of government venture capital on the performance of entrepreneurial enterprises;and incorporates private venture capital into the research framework,and analyzes the regulatory role of government venture capital investment and entrepreneurial firm performance.The main conclusions are as follows:1)Government venture capital has a positive impact on the growth ability and market value of startup companies.The higher the proportion of government venture capital investment,the better the entrepreneurial company's growth ability and market value.While government venture capital provides financial support for start-up companies,it also provides relatively mature management experience and related networks and other added value to promote the growth and value of startup companies.The certification of government venture capital also provides a good signal to the outside world for the quality of start-up companies.It will positively influence the market value of startups while attracting other investors and partners.2)The impact of government venture capital on the profitability of start-up companies is not significant.Government venture capital is more concerned with the growth of start-up companies in the investment process.It does not pay enough attention to the improvement of its profitability,and the political nature of government venture capital may affect decisions made by start-up companies that are inconsistent with their fundamental interests.The loss of some economic benefits caused by startup companies will offset the positive impact of government venture capital investment.3)Private risk investment will weaken the influence of government venture capital on the growth ability of entrepreneurial enterprises and the market value of the enterprise,and its impact on the relationship between venture capital and the profitability of start-up companies will not be significant.Compared to government venture capital investment,private venture capital investment is a stronger and professional investor,and private venture capital investment is better than government venture capital certification.Private venture capital investment in the investment process will interfere with and monitor the venture capital industry.To a certain extent,it weakens the influence of government venture capital on the growth ability and the market value of the enterprise.However,due to the purpose and efficiency of government venture capital investment and the way it affects the company,the impact of private venture capital on the profitability of government venture capital and startup companies is not significant.Based on the research of government venture capital investment in startup companies,this paper discusses the impact of government venture capital on the growth ability,profitability and market value of venture capital companies.Private venture capital is also used as a regulatory variable to analyze private venture capital investment.The role of government venture capital in influencing the relationship between the growth ability,profitability,and the market value of the entrepreneurial enterprise has expanded and deepened the related research on the background of China's venture capital investment in the company's performance,and has also contributed to the development of the venture capital industry.The establishment of policies and systems and the improvement of government venture capital provide reasonable and effective advice.