The Application Research Of The Rule Of Thumb In The XC Venture Capital Firm

Abstract:SME financing is a matter of great concern of the whole society, the venture capital company as a direct financing channels for SMEs, the development of SMEs in addition to providing financial support, but also provide professional value-added services. Currently, XC venture capital firm and other domestic venture capital firms, who choose P/E method and net asset value method to evaluate the project, these two methods are obviously unable to meet XC venture company requires. The rule of thumb is a method for the U.S. venture capitalist commonly used, the method combines the capital budget and securities evaluation, taking into account both the optimistic estimate of venture capitalists venture prospects also taking into account the dilution upfront investment assets, the provisions of the specific rules of thumb parameters. This paper aims to find a suitable method for domestic venture capital firms.In this paper, research status at home and abroad on the rule of thumb has combed and analyzed on the basis of analysis of the theoretical basis and the general model, and analyzed the rule of thumb affect factors between China and USA. By assessing the value of investment projects XC venture capital firm to analyze the problems, combined with application of the rule of thumb of Sino-US differences in analysis results, design specific programs of XC venture capital firm use the rule of thumb,and then applied the programs in KE firm which is the investment project of XC venture capital firm. The result for this paper is that the rule of thumb is better than the previous method using in XC venture capital firm.