A New Venture Capital Portfolio Model Based on Considering Management Input' Influence Coefficient

Venture capitalists' management support is of the same importance to the success of venture businesses as the capital support. The inputs of management and the investment of capital will together affect venture capitalists' specific choices of venture businesses. Based on that venture capitalists and venture entrepreneurs could reach an optimal contract, influences of management input on venture firms in venture capital were analyzed, and management input' influence coefficient of VCs was put forward. Then, a general venture capital portfolio model were constructed. Further. the risk measurement in venture capital was simplified, and a more simplified and applicable model was built up. The models could be acted as guidance of how to allocate capital and management in venture capital portfolio investment to some extent.