The Applied Research Of Real Options In The Venture Capital

In recent years, as China’s economic development mode from extensive to intensivechanges in the national economy of adjustment and transition. Efforts to foster the formationof a core intellectual property rights of high-tech industries, and make the national economygradually become healthy, stable and sustainable development is the main driving force ofthe two "100years " of the occasion to achieve the great rejuvenation of the Chinese nationChinese dream inevitable choice. As we all know, the traditional credit financing model cannot be high-tech enterprises in the cultivation and development of this process has the highinvestment and high income phase-matching, and thus can not meet the traditional mode offinancing opportunities for high-tech enterprises in modern society fleeting the financingneeds, which will result in high-tech industry development has lagged behind, socialopportunity cost of funds increased significantly. Fortunately, as a new venture capitalinvestment and financing instruments, are leading the way to solve this problem further andfurther away, the business community and academia to bring a ray of hope. Venture capitalis formed through the accumulation of social capital at risk of a certain size, fortechnological innovation, scientific and technological innovation projects or enterprises toinvest in the future through the listing of, merger or other transfer of other ways to withdrawequity investment to achieve capital appreciationSince the introduction of venturecapital,china has made considerable progress,there are many of the current annual riskinvestment case,and each one needs to undergo high-tech capital investmentdecision-making process.In this process,venture capital firms have to decide wether the high-tech enterprise hasthe investment value.hence,high-tech venture capital valuation is the core issue of the riskinvestment faced.Firstly,from the theoretical issues related to high-tech venture capital research,thispaper discloses and describes the theoretical as well as high-tech venture capital investmentproject characteristics and the operational processes of the risk investment,thereby generallyembrace the whole process of the high-tech venture capital operations.secondly,this paperinvestigates and study the investment evaluation methods of real options and traditionalway,through comparative analysis and theoretical explanations,detailed reveals thesuperiority of the real options in the high-tech investment decisions compared to thetraditional investment decision-making methods(NPV).then,this paper selected a typicalrepresentative of the high-tech industry-LCD panel industry as a case study,detailed analysis the pattern evolution of the global LCD-panel,as well as the achievements of china’s LCDpanel in recent years,and on this base disclose the problems of china’LCD panelfaced.Finally,introduces the theory of real options to the evaluation of high-tech venturecapital.combined with the characteristics of high risk and milti-phase,investment timing isdevided into multiple stages,build a multi-stage,dynamic compound real options model toevalue each stage separately.Then,select the case-GUANG ZHOU CVTE to analysis the investment decision,andcompared with traditional methods.The results showed that when evaluing the high-techinvestment decision with high risk,real options approach can obtain more substantialvaluation results.Hoping this model helps to improve the high-teck investment evaluationsystem,to be more realistic response to the investment value rather than just relying on cashflow,so as to attract more venture capital into high-tech venture investment projectareas,broading the financing channels of high-tech enterprises,improving our corecompetitiveness.