Research On Value Management Of Venture Capital In Science And Technology Corporates

When the development of science and technology corporates reaches a certain stage,they often show a slowdown in growth due to various reasons.Some corporates have decreased innovation ability and some have lost talents.Therefore,science and technology corporates must carry out product technology upgrading and business transformation to achieve sustainable development.As a leading corporate in science and technology corporates,Xiaomi has been adopting corporate venture investment in recent years to enhance its core competitiveness,expand product market and find new sources of income,and has formed a unique value management mode in this aspect.This paper summarizes the successful experience of xiaomi’s venture capital project from the perspective of value management,which has a certain theoretical and practical significance.This paper analyzes the value management mode of Xiaomi corporate venture capital from four aspects: value discovery,value creation,value guarantee and value realization.Firstly,value discovery analysis is carried out from the perspective of corporate venture capital motivation and investment philosophy,which is the beginning of value management activities.In addition,three industry maps of intelligent hardware,Internet and consumer goods are drawn according to different investment fields,laying a foundation for the value creation analysis below.Secondly,value creation is analyzed from the perspective of value sources.This paper uses the synergy theory to identify the sources of value creation,including potential business synergy,potential financial synergy and potential management synergy.Then,the value assurance analysis is conducted from the two management strategies of equity participation and holding,so as to determine which competitive measures xiaomi will take to monitor risks and provide value-added services to ensure the realization of value.Finally,based on the performance evaluation theory,it evaluates the realization effect of xiaomi’s overall value management from three aspects: classification evaluation,overall evaluation and evaluation of synergies.This paper finds that the value management mode of corporate venture investment adopted by Xiaomi has significantly improved its business performance and overall strength,and added value to it.The value of Xiaomi corporate venture capital not only comes from the cooperation between the investment object and Xiaomi,but also from the mutual promotion and co-evolution of different investment sectors.In addition,the intelligent hardware sector and Xiaomi generate more cooperation.Post-investment management is of great significance to guarantee the realization of value,because it can not only avoid the moral hazard caused by postinvestment information asymmetry and the risks of entrepreneurs not being managed to the greatest extent,but also make full use of xiaomi’s internal resources to add value.The significance of this study is to provide experience and reference for venture capital of science and technology corporates.