Research on the Evaluation of Venture Capital Investment Project Based on Multi-Stage Framework
|Course||Technology Economics and Management|
|Keywords||Venture Capital Multi-stage Investment Value Assessment Real Option|
Venture capital, originated from 1940’s in American Silicon Valley, is such an investment behavior: with the purpose to get large amount of investing reimbursement, investors put venture capital on small-and-medium-sized enterprises with characteristics of high risk and high technology, as well as huge development potential and increasing value. It is a sally port of new tech transformation and a main approach to new economic growth. With the unique advantages and operation mode, venture capital plays an important role both in innovated enterprises’ cultivation and high-tech industries’ development, and which cannot be replaced by traditional financial organizations such as commercial banks. Venture capital of our country started from 1980’s and got an incredible development in the late 90’s until now. However there is still not a theoretical system about how to assess investing projects in our country, which results in the initial stage of practice and exploration in our country. Hence, research on theory and mode of evaluation in venture capital projects has a great significance of reality.According to the characteristics of venture capital, this paper started from venture capital theories of different stages. Firstly, it analyzed enterprise characteristics of different stages and studied phased investing behaviors accordingly. Secondly, this paper compared traditional evaluation methods with real option method in venture capital, and concluded the deficiency of existed project evaluation methods in practical field. Finally, through systemic analysis of venture investing evaluation, this paper divided project evaluation into two parts:static evaluation and dynamic evaluation.In the aspect of static evaluation, this paper firstly established static evaluation system according to life circle of growth enterprises. Furthermore, by establishing fuzzy comprehensive evaluation system, subjective evaluations of venture capital investors were processed qualitatively. Finally static investing value came up.In the aspect of dynamic evaluation, this paper firstly analyzed characteristics of real option in different stages. Secondly, at the base of ternary tree model, this paper stimulated investment decision made by venture capital investors in different stages according to changes in the process of growth. At last, ternary tree option assessing model and phased characteristics of venture capital were combined, and a multi-phased ternary tree option model was established to evaluate dynamic investing value of venture capital projects.Last but not the least, an empirical case based on a real investing example in Chapter 5 was used to test the liability of the model established in the former chapters.