The Design And Implementation Of The Venture Capital Evaluation System

The world economy is entering a new stage of development—the knowledgeeconomy era, with high-tech industries in economic development as the core and thefirst pillar. Venture capital(VC) is arousing people’s widespread concern and attention asa catalyst and incubator of the industrialization of high-tech. Countries all around theworld are now actively developing their own VC industry to promote economicdevelopment and national prosperity. VC in the age of knowledge economy is actuallyto invest a group of research and development (R&D) projects characterized byhigh-risk and high-return, to transfer the successful projects and achieve return oninvestment. In China, VC is still at its initial stage, and the evaluation system is still tobe further improved.Value assessment of VC investment plays a very important role in the wholeoperation. Only through objective and comprehensive valuation can the VC companiesmake right judges on the risk investment projects such as the feasibility of project, thepotential of market and the value of investment, thus make right decisions. However,most of the current VCs are invested to new high-tech enterprises, there are so manyuncertainties in the whole process that the risk is much higher than other commoninvestments. Very little information can be got in the assessment of venture capital, andless objective information can be used among these information. The results of thesubjective assessment can be affected by many factors, and the inherent risk is quitehigh. Different investment appraisal, evaluation results are not the same. Therefore,based on foreign experiences, it is urgent for China to establish an objective venturecapital revaluation system under the background of our country actual condition, whichcan promote the venture capital industry rapid development.In this dissertation, foreign research results are drawn, the right investment theoriesare followed, the appropriate assessment methods and feasible evaluation criteria areadopted, and theoretical analysis and practical application of case are used. Combiningwith China’s development status and understanding the essence of VC, a comprehensiveVC evaluation system is developed, which are made up of the qualitative evaluation system and the quantitative evaluation system. In this system, the classic modeldescribed by Tyebjee-Bruno based on qualitative assessment index system is modified,according to the current status of VC and the problem of the specific applying processin China, and the exit mechanism, financial conditions and the governmental supportfactors are considered in the logic relationship of the model. At the same time, YinShu-Ya’s linear algebra method of quantitative analysis is also adopted and combinedwith the qualitative analysis to evaluate the venture capital.