Study On Evaluation Of Venture Capital Management Team Applying For Fund-of-Fund

In recent years, with the continued expansion of high-tech industry, as well as government and market's continuous attention to improving high-tech industrialization, several regional government have launched venture capital fund-of-fund to leverage financial resources to play an important role in capital amplification, guiding more capital into the venture capital field, supporting the early high-tech enterprises in order to revitalize the energy, biomedical, software and information services and other strategic emerging industries, thus improve China's comprehensive national strength and international competitiveness.Venture capital fund-of-fund is government's new method to support venture capital, not directly invest in start-ups, but indirectly act on start-up companies through venture capital management teams. So screening high-quality, professional venture capital management team in line with the basic spirit of fund-of-fund is at the very centre of the implementation and operation of the fund-of-fund. Especially against the current domestic venture capital industry situation which is quite mixed and uneven, establishing a.scientific and rational set of selection criteria and mechanisms is particularly important and urgent.This paper, with venture capital management team as its study objective, mainly focuses on two aspects:establishment of evaluation index system of venture capital management team applying for government VC fund-of-fund, and evaluation method selection.First, according to the principle of independence, representativeness, feasibility, comparability and relevance, the paper based on team theory, with characteristics of venture capital and basic spirit of government VC fund-of-fund in consideration, does a comprehensive analysis of venture capital management teams' main factors that influence venture capital fund-of-fund effectiveness, and afterward establish evaluation index system of venture capital management team applying for government VC fund-of-fund from the perspective of team-based quality, past performance, and investment strategy.And then by using statistical analysis software SPSS, the paper does correlation analysis of indicators to adjust the index system, and eventually comes to the final evaluation index system of venture capital management team applying for government VC fund-of-fund, which includes individual ability, experience, team reputation, market and social resources, return on investment, the annual rate of return, investors satisfaction, start-ups'satisfaction, the investment duration time.Secondly, on the basis of analysis and comparison of various evaluation methods' characteristics and classification accuracy, this paper adopts Support Vector Machine (SVM) approach which is based on statistical theory and structural risk minimization criteria to do the evaluation of venture capital management teams, and uses Grid Search Method to select RBF kernel function and its optimal parameters. Based on the above-mentioned work, the evaluation model of venture capital management teams applying for government VC fund-of-fund is utimately built. Classification evaluation results show that, SVM-based evaluation model of venture capital management teams applying for fund-of-fund boasts high prediction accuracy (ie, validity), and is found to indicate certain superiority in comparison with multi-class discriminant analysis method.Finally, faced with fund-of-fund screening and operation issues, as well as venture capital management teams' own problems, which block them from obtaining fund-of-fund, the paper puts forward several corresponding policy recommendations aiming to enlighten government venture capital fund-of-fund to improve the using efficiency and support effectiveness.