A Research On The Effect Of Venture Investment On Value Increment Of Entrepreneurial Enterprises

Since the emergence of venture capital,it has become one of the most powerful drivers to help start-ups succeed.Faced with unknown risks and opportunities in the market,start-up enterprises must learn to play games.However,due to lack of experience,technology and capital,start-up enterprises often fall into difficulties and are difficult to obtain financing from traditional financial institutions.However,there are relatively few restrictions on obtaining venture capital.It has a natural fit with the capital,experience,knowledge and social network of start-up enterprises.In recent years,China.s venture capital has developed rapidly and the scale of venture capital has become larger and larger,providing sufficient financial support for many start-up enterprises.However,the use of additional value-added services by venture capital for their investment enterprises is not complete.Even many venture capital institutions have to leave their hands after injecting funds and only receive high investment returns after the value of start-up enterprises increases.Therefore,taking Alibaba as an example,this paper discusses the impact of venture capital on the value of start-up enterprises by improving the level of corporate govermance and the innovation ability of enterprises,and analyzes the sustainable development ability of enterprises after venture capital exits.This paper first reviews the relevant theoretical research on venture eapital,sorts out the domestic and foreign literatures on the relationship between venture capital and corporate governance and innovation capabilities,and analyzes the impact path and mechanism of venture capital on the value of start-up enterprises from a theoretical perspective.Then Alibaba is introduced as a case for further analysis,and on this basis,it puts forward its own opinions and future development direction.In general,this paper affirms the value-added effect of venture capital on the value of start-up enterprises from both theoretical and case perspectives,including that venture capital can choose to invest in a combination of joint investment and phased investment,enter the board of directors or enterprise management to participate in the supervision of the enterprise's business activities,venture capital provides financial support and non-financial value-added services for enterprise innovation activities,and effectively reduces innovation risks.This paper also pays attention to the risks and constraints in this process,mainly focusing on the unsound exit mechanism of venture capital and government intervention.