Study On The Selection And Evaluation Of Venture Investment Project

In the first quarter of 2018,China's venture capital market developed steadily.Private equity investment institutions generated 460 investment cases in the first quarter.A total of 23 funds were raised for investment in mainland China,and 136 funds were disclosed.It is about 3.5 billion yuan.In recent years,China has launched a new investment and financing mechanism for private equity institutions.Although it started late,it is currently developing steadily.“High growth,high risk,high profit” is the most prominent three characteristics of private equity investment institutions.Therefore,it is especially important to establish a complete evaluation model of entrepreneurial project selection before investment decision-making.Investors and managers try to correctly screen evaluation projects under limited conditions and asymmetric information.This article will combine the extracurricular practice work,taking the internship venture capital institution W Investment Co.,Ltd.as an example to study and analyze the selection and evaluation of domestic venture capital investment projects.Firstly,based on domestic and foreign research data on venture capital,it analyzes and studies from three aspects: definition of venture capital,selection of project evaluation indicators and evaluation model.Secondly,the industry is selected through the Porter Five Force Model,and the project valuation is analyzed and calculated by the free cash flow theory,which provides a theoretical reference for the writing of this paper.In addition,the research analyzes the measures for the screening of venture capital projects of W Investment Co.,Ltd.,and links the actual investment in the entrepreneurial projects.Through research and analysis on the five dimensions of industry selection,team strength,market competitiveness,investment return and risk assessment,The free cash flow model assesses the value of the firm and forms a complete project evaluation model to judge the rationality of the investment decision.This article will combine case studies of W investment and investment company investment projects.This project is a dairy industry and is a growth project.There is a trend of monopoly of large enterprises in the dairy industry.The market share of Mengniu and Yili is too high,which undoubtedly makes it difficult for other brands in this industry to enter and finance.Investors can make more reasonable and effective investment choices based on this research.In addition,the selection model can also be completed through qualitative data evaluation,which is conducive to making the right venture investment decision.Finally,through the practical experience of the research and the conclusions obtained,it is possible to make reasonable suggestions for venture capital institutions and expect to continuously promote the healthy development of the venture capital market.