Research On The Impact Of Venture Capital On The Operating Performance Of Biopharmaceutical Companie

In recent years,medical treatment has gradually become a hot topic in society,and the Chinese government has paid more and more attention to the biomedical industry,which has promoted the development of the biomedical industry.However,the biomedical industry belongs to the science and innovation industry,which needs to invest a lot of RESEARCH and development funds in the early stage.Once the innovation fails,it will suffer huge losses,which is far beyond the tolerance range of traditional financing methods,leading to high financing constraints in the industry,and restricting the development of the biomedical industry in China.Venture capital is a financing method originated in the United States.Generally,venture capital is more inclined to invest in emerging industries with "high risk and high return",which is very matched with the characteristics of biomedical industry.At the same time,venture capital can widely absorb capital from the capital market to invest in biomedical enterprises,alleviate the financing constraints of biomedical enterprises and help enterprises develop.In China,biomedical industry has become the focus of venture capital institutions,venture capital investment in biomedical industry has been increasing,has become an important force to promote the development of China’s biomedical industry.For biomedical enterprises,absorbing venture capital can not only alleviate the financial problems encountered by enterprises,but also improve the corporate governance structure,improve the operating efficiency and promote the growth of enterprise performance with the help of the experience of venture capital institutions.It is of great practical significance to study the influence of venture capital on business performance and explore its internal mechanism for promoting the progress of biomedical industry in China.In order to study the impact of venture capital on the performance of biomedical enterprises,this paper adopts the methods of theoretical analysis and case analysis.First,this paper introduces the background of venture capital and biomedical industry,and summarizes the existing domestic and foreign literature.It also expounds the specific ways that venture capital promotes the growth of enterprise performance and analyzes the influence of venture capital on enterprises.Secondly,in order to study the specific impact of venture capital on the business performance of biomedical enterprises,this paper chooses a case study of Sequoia Capital’s investment in Diving Medical treatment,and introduces the basic situation and main process of investment in detail.Again,analysis of the case company specific financial data analysis,found the risk investment into improving the biological medicine enterprise’s financial condition,optimize the corporate governance structure and enhance the enterprise’s market share,but also has certain "myopic" behavior,excessive pursuit of promotion enterprise’s scale,ignore the healthy development of the corporate finance for a long time.The grey correlation analysis method is used to process the data of sample enterprises,and the control enterprises are also selected for comparison,which further confirms the relevant conclusions of this paper.Finally,according to the research results of this paper,the corresponding suggestions are put forward.