Determinants on the Successful Investment of Venture Capital

A successful venture capital investment means investors put money into projects or enterprises with high risks but potentially high returns. Academic staffs have been calling for further research on relevant information about venture capital, but there is no specific research about the determined factors of successful venture capital investment in the relevant literature. This paper may make you more aware of the influencing factors of venture capital, so as to help you make more comprehensive investment decisions or inspire you to conduct in-depth research in related fields. This paper finds the conclusion mainly through searching the relevant literature on venture capital and comparing it to the investment examples of individual companies. By analyzing the advantages of investors and the positive impact to the company, the paper continuously compares and evaluate and finally find out the three determined factors that have the greatest impact on venture capital investment. These are management team, valuation and deal structure respectively. Venture capital investment is an important way for small companies to further expand their scale, and it also reflects the changing trend of the world economy to a certain extent.