Research On The Index System Of Venture Capital Project Selection In China

It's proposed that government will strengthen support for the innovation of start-ups firms and promote the transformation of scientific and technological achievements in the report of the 19th National Congress of the Communist Party of China.Experiences from countries around the world have shown that venture capital plays a key role in supporting the development of innovative small and medium-sized firms and it is an "incubator" and an "engine" promoting the transformation of scientific and technological achievements,which is considered as a booster for the new economy.The choice of venture capital project directly determines its support mode,intensity and structure for science and technology innovation.Selecting high-quality projects based on relevant index system is an important part of venture capital investment decision-making.Therefore,it is of great significance to study the index system for the selection of venture capital projects,which the academic community also attaches great importance to it.Regarding the research on the selection of venture capital projects,it's formed their own systems in foreign countries,which provides a theoretical basis for the research on the selection of venture capital projects in China.Domestic scholars have also studied the selection of venture capital projects,but most of them are based on foreign research,and there is inconsistency and lack of practicality in the selection of indicator systems.In addition,in venture capital practice,venture capitalists rely heavily on experience and subjective judgments on project selection,thus it is urgently needed to establish a comprehensive set of project selection indicator systems for reducing risks.Based on this,this paper studies the index system of China's venture capital projects based on signal theory,information asymmetry theory and enterprise value theory.Firstly,this paper analyzes in detail the indicators used by traditional investment projects and venture capital projects in project selection and the investment practice standards of venture capital institutions,which provides a theoretical basis for index system construction.Secondly,this paper studies the general situation of China's venture capital market and the characteristics of unicorn companies,summarizes the investment trend of China's venture capital,and finds out the problems in the selection of venture capital projects.Finally,based on past research,expert opinions and the core demand of venture capitalist's project selection,this paper establishes the index system of China's venture capital project selection from there dimensions:external support system,project commercialization expectation and project operation capacity and determines the weights of indicators using the combination of entropy weight method and analytic hierarchy process,So that the evaluation model of the index system is obtained.Meanwhile,the risk investment index system established in this paper is applied to the actual investment project.The results verify the practical feasibility of the index.The findings in this paper are as follows:In the choice of venture capital projects in China,venture capitalists choose projects from three dimensions:commercialization expectation,project operation capability and external support system.Commercialization expectation is the first important factor,followed by the project operation ability,and finally the external support system.The second level indexes are market factor,entrepreneur and team factor,business factor,industry factor,financial factor and environment factor in order of importance.This shows that venture capitalists pay more and more attention to the value of the project itself In addition,when making investment decisions,venture capitalists tend to choose industries with relatively loose policies and promising prospects,and companies with business model innovation capabilities and technological innovation capabilities,and the entrepreneurial teams of such companies have the characteristics of ambitious,passionate and good learning and execution ability.The index system established in this paper is feasible,which providing reference for the selection of venture capital projects in China.