China's Western Region Of High-tech Venture Investment Project Risk Identification And Assessment Studies

Development of the western region is related to China's reform and opening up and socialist modernization as a whole, and is related to construction of Harmonious Society and the ultimate realization of common prosperity. It has become the strategic location of China's current economic and social development. With an extensive land area and abundant natural resources, it enjoys a huge potential for development, and since China began implementing the western development strategy, the economy of the western region has made enormous progress. However, restricted by historical, social and natural conditions, the economic development of this area is relatively backward. There has been an obvious difference in economic strength and economic environment between western region and other region of China.Science and technology are primary productive forces. As the leading edge of innovation and technology, high-tech has become the inevitable trend of modern science and technology development, and vigorously development of high-tech has become a top priority of our country. Venture capital provides financial capital for high-tech projects and is playing its unique and irreplaceable role in promoting high-tech industry development. The data show that the trend of "going west" of the geographical distribution of the Chinese venture capital industry is becoming apparent in recent years. The number of investment projects and investment compound annual growth rate in western region is increasing year by year. And as the engine of innovative economic development, venture capital brings new growth point to the entire western economic development. However, due to the late start of the venture capital of the high-tech projects in western region, the low technical level, the lack of professionals, and the not stable investment environment, the development of the venture capital industry is somewhat affected, especially in high-tech projects. Special investment environment of the high-tech venture capital projects in the western region makes the uncertainty of investment project of this type and the difficulty of risk management increase. Besides, the theory and practice of systematic study of risk identification, risk analysis and risk assessment of high-tech venture capital project in western region are relatively weak.Based on these peculiarities and previous studies, this study provides support of scientific decision-making and investment risk reduction for the venture capital entity by carrying out the theories and methods of risk management, project management, and technological economics and establishing a risk identification and assessment system of venture capital in high-tech projects for this region.From the perspective of venture capital firms in western region, taking the risk of high-tech venture capital projects as the research objects, this paper identified and analyzed the different risks faced by the various stages of the venture capital, and divided the risks faced by the venture capital of high-tech projects in western region into two parts, including internal environment risk and external environment risk. The internal environmental risks can be divided into management risk, technology risk, market risk and production risk, and the external environmental risks can be divided into policy environmental risk, macro-economic environment risk, social environment risk, industry risk and natural environment risk. Then based on the risk factors, fuzzy comprehensive evaluation method and the he analytic hierarchy process, this study established the risk evaluation model of venture capital of high-tech projects in the western region, and the venture capitalists can use it to fully grasp the degree of risk of the project. Finally, as a case study, a western high-tech venture capital project is analyzed.