Study On Index System Of Venture Capital Project Selection

Venture Capital Investment(VC),is also known as Risk Investment.Enterprises those promise very quickly are provided equity financing and value-added services by professional institutions,to help themselves grow rapidly.After the enterprises developing to certain scale,the professional institutions sell their equity by listing,merger or stock transfer,to get high return of investment.Technology owners who want to turn ideas into goods that accepted by market,need not only the potential of technology or product,but also good capital operation and enterprise management.But they are often lack of two factors.Before turning technology into economic benefits,on the one hand,it is difficult to get loans from the bank for technology owners.On the other hand,they can't issue bonds or stocks.So through normal channels it is hardly difficult to finance,especially for high and new technology.Many high technology products or ideas often die on the road to the market.Venture capital investment can accurately solve the problems,but the risk still remains,and it just transmits from technology owners to venture capitalists.Venture capitalists are willing to take huge risk for getting high profits,so venture capital investment has the characteristics of "high risk,high return",and there are high probabilities of failure for investment.In order to reduce risk,to make the venture capitalists obtain maximum profits,and to promote the development quality of the venture capital investment,it is necessary to use scientific methods to choose investment projects.In this paper,it is just for these reasons,and focus on index system of projects selection.In this paper,it firstly describes the background,purpose and significance of research,then lists the related concepts and theories,and explains the domestic and overseas research status.We also analyze the index system of venture investment project selection,the research content and existing problems.It will provide theoretical basis how to build comprehensive and objective index system of project selection.On the basis of relevant reference and research results,we are trying to set up preliminary index system,to collect data through questionnaire survey form.Through mathematical statistics,hierarchical analysis method is applied to get the index system,including seven dimensions of business environment,industry analysis,financial data,marketing,product and technology,team and management,benefits and exiting.We collect the relevant data of listed companies,then analysis the practical application,and verify the validity of the model.Finally we want to find out the differences between theory and practice and then analysis the reason one by one to make the evaluation more applicable and perfect.In this paper,the research divides into six chapters.The first chapter is introduction,which introduces the research background,significance and situation of venture capital in general,then accordingly puts forward the research ideas and methods.The second chapter expounds the related concept of risk investment,development status and existing problems.The third chapter analyzes advantages and disadvantages of other project selection index written by professors at first,and then we think it is necessary to set up more comprehensive and scientific selection index system.The fourth chapter expounds the constructing principles and ideas of the new index system.We study other predecessors' research at first,and put forward new index system of project selection,then verify the index system.Finally we describe the process of screening,and establish final index system.The fifth Chapter combines the actual application with listed companies' data,and then verifies the validity of the model.It is definite theoretical for the research and can develop risk investment theory of our country.At the same time,the index system of risk investment project selection is accessible,practical strongly,and conducive for investors to evaluate real situation of the project by using the comprehensive selection index system,which makes reasonable investment options.There are some innovation in this paper:(1)on the analysis of index system of venture investment project selection,it should consider multiple point of view from venture capitalists and enterprises,which contains the index such as return on investment;(2)the other scholars mainly focus on the index research of company and operating level,setting up similar operations such as indicators.But it is the lack of awareness of the entrepreneurial team itself.In this paper,basing on the comprehensive reference of other index system,we increased choose indicators of entrepreneurial teams;(3)considering the economic model of China,we target to research factors of entrepreneurship environment,then analyse macroscopic economic and political influence on entrepreneurship.