Research On Application Of Venture Capital Risk Assessment Based On Principal Component Analysis

Venture capital has the characteristics of high returns and high risks.Investors or enterprises are required to evaluate the risks of investment projects and make corresponding investment decisions so as to avoid the impact of risks.Under the environment of high-speed development of venture capital projects in our country,through the assessment of venture capital risks,not only can the investment target be rapidly helped to improve the development speed and speed up the pace of catching up with leading enterprises in the industry,but also the investment risk rate can be reduced,allowing investors to obtain relatively high profits.As venture capital activities are inevitably affected by factors such as insufficient management and asymmetric information,these factors will result in risks in management,development and operation,credit,etc.In addition,venture capital project risks are difficult to realize quantitative research.Even though numerous scholars have been exploring new methods of venture capital risk assessment and have achieved some results,there are still some problems in the assessment methods more or less.Moreover,the choice of most venture capital enterprise risk assessment methods is based on the actual situation of the enterprise and there is no unified and standardized method system.Based on the above situation,this paper,aiming at the characteristics of venture capital risk assessment and fully considering the characteristics of venture capital risk,applies the principal component analysis assessment model to venture capital risk assessment and selects an optimal risk assessment method for application research,which has certain reference significance for venture capital institutions to carry out risk assessment,enhance risk prevention capability and optimize resource allocation.