Research On The Risk Management Of Venture Capitals

Venture capital is derived from modem finance innovation.As one of a special form of capital operations,it has made great contributions for the increase of economy and especially the promotion of high technology.Venture Capitals rooted and sprouted in China in the 1980s and after 20 years of development,China's venture capital industry has made a progress in certain degree.Currently the mainstream of domestic venture capitals is still the state owned enterprises.Due to its characteristics of high-rate risk and low-chance success of venture capital industry,venture capitals grow up in our country by challenging a lot of obstacles.Hence,for the success of state-owned venture capitals,the core subject is to recognize the risks and research the risk management mechanism in their operation.This paper sets the main lines as the risks and risk management confronted and applied by state owned venture capitals.Then it explores how to efficiently apply the risk management theory into the operations of state- owned venture capitals.In the research,it first divided the risks in venture capital operations into two types,i.e.macro risks and micro risks;then it put the emphasis of the study on the decision risk in the project assessment,the entrepreneurs' agent risk and management risk of venture entities as well as the cash out risk for venture capitals.In view of the above risks,the paper puts forward corresponding risk management strategies and suggestions.This paper applies relevant economic theory into the study and uses systematic and comparative analysis methods as its main analysis methods.Besides,the paper makes a lot of qualitative analysis aided by quantitative analysis in the study by properly combining the theories and strategies.The study of this paper is trying to explore a scientific risk management mechanism for state-owned venture capitals which can gradually eliminate the bottlenecks in the development of state-owned venture capitals,as a result,can lead the venture capital industry into a positive development cycle and finally lead the industry into a sustainable mode of growth.