Author(s)

Shuying Zhong, Jinhui Hou

Corresponding Author

Shuying Zhong

ABSTRACT

This paper provides an analysis on the factors that correlated with risk-aversion decisions and investment preference of Chinese leading venture capital firms. In order to have a better understand of factors that will have impacts on Chinese VCs during the investment, the data of 59 projects that 11 Chinese largest independent venture capital has invested during 2017-2019 was collected. The linear regression models are contracted and ANOVA, AIC rules are used to test the hypothesis. Remarkably, the GDP has a positive effect on average investment amount; the industry that starts-ups are in is the core competitiveness when being risk-evaluated; the wealth that VCs have does not statistically significantly affect the investment decision. Neither do other factors. Therefore, the results of the experiment shows the pattern of the behavior of Chinese VC’s investment decision, it is meaningful to analyze their risk-aversion and investment preference.

KEYWORDS

Venture capital, risk aversion, risk management, investment management