Analysis And Case Study On Venture Capital Strategy For Fresh-goods E-commerce Industry

Fresh-goods e-commerce is an innovative model for fresh agricultural productscirculation with the development of e-commerce and cold chain logistics in recent years.The e-commerce channel has not only shortened the traditional supply chain but alsoimproved its efficiency. It improves both food safety and freshness, also reduces thecirculation cost and promotes market prosperity. Fresh-goods E-commerce industry getshigh attention from venture capital funds. However, due to the special characteristics offresh goods, the risk of these projects is very high and requires special measures on theinvestment strategy of venture capital firms.The thesis focus on a case of a VC fund invests on a Fresh-goods E-commerce firm. Ifirst review VC theories and related researches, then introduce the industry backgroundand the firms in the case. The following setion shows all the details and procedures aboutindustry research, due diligence, investment structure design, business valuation,investment negotiations, project monitoring and value-added services. Through theanalysis of the case, I sum up the standard process of venture capital investment, extractthe points where the venture capital industry need to strengthen. First, The firm shouldstrength their organization construction including talent recruitment, training andmotivation. Then the firms should follow standard investment process, because only thestandard processes and scientific decision-making mechanism can avoid possiblejudgment errors and reduce the project risk. At the same time, the firms should strengththe after investment management, including project monitoring and value-added services.After investment management is a key factor to the success of the project and corecompetitiveness that make difference from other firms. VC firms should improve theorganization structure to reinfocre the after investment management, to provide a fullrange of value-added services.