Research On Control And Evaluation Of The Financial Risk Of Venture Capital Enterprise

The venture capital industry is a new industry and venture capital is a kindof equity investment. It can realize the optimal allocation of market resources,and technology and management can be fully integrated by it. It also can promotethe development of national economy. No matter the foreign companies likeMicrosoft, Cisco, Kodak, Apple computer or the native companies like Sina,Alibaba and so on grow into the flower of global business with the help ofVenture Capital. The venture capital has a great role in promoting the economicdevelopment of a country, and it attracts every investor’s eyes with its infinitecharm. So it’s very necessary for governments to strengthen the development ofventure capital business.In recent years, the local venture capital industries begin to enter the rapiddeveloping channel in our country. However, the operational mechanism of theventure capital industries determines its, development and risk characteristics.Due to lack of the perfect investment environment and the guidance of theory,people still did not have enough recognition about the venture capital investment,and increases the risk intensity. In view of this, this article carries out asystematic, comprehensive analysis of the venture investment which is a specialmode of operation, on the basis of fully understand about the venture investment,aims to enhance the consciousness of risk management, learn the westerninvestment theory, seek effective methods to control financial risk of the venturecapital enterprise, and have a certain reference to investment decision of theventure capital corporation.As the basis of the financial risk analysis about the venture capital enterprise,this chapter has a comprehensive research on the risk control of the venture capital enterprise using the principal component analysis methods and the factoranalysis methods. First of all, on the basis of many domestic and foreignliteratures, it has a summary about the effect factors according to the situation ofVenture Capital enterprise financial risk and the problems appearing in theprocess of controlling。Then, it has proved its risk control limitations throughthe comparison on financial evaluation methods which exist in financial riskcontrol system, and designed quantitative evaluation index of venture capitalenterprise financial risk control system combining with the existing controlmodel. Secondly, it builds the financial risk evaluate model of venture capitalenterprise using the factor analysis method and selects samples for modelvalidation. Finally, it puts forward to the strategy of strengthening theimplementation of risk control according to the research.