Investment risks mainly include natural risks, liquidity risks, subjective risks, social risks, economic risks, platform risks and technical risks.
The company is going to invest in a project. Any suggestions and plans?
Investment projects are an important measure for the company to achieve high-quality development. Under normal circumstances, first of all, do a good job in the investigation and demonstration of the investment market to ensure that the investment direction is effectively combined with the long-term development of the market.
Secondly, carry out risk assessment, inspect partners and ensure the safety of funds.
Third, on the basis of doing a good job of preliminary investigation and research, convene a board of directors to demonstrate and make decisions.
Fourth, continue to do a good job in project tracking, supervision and management. ,
3. What are the main risks of project investment?
The main risks of project investment are: 1, the main types of risks in project financing; 2. Systematic risk of management measures; 3. Country risk and financial risk; 4. Unsystematic credit risk; 5. Completion risk, operation risk, market risk and environmental protection risk. Investment risk refers to the uncertainty of future investment income, the risk of income loss or even principal loss in investment. For example, stocks may be locked up, bonds may not be able to repay the principal and interest on time, and real estate may fall. These are all investment risks. Investors need to choose financial instruments according to their investment objectives and risk preferences. Diversified investment is an effective and scientific method to control risks, and it is also the most common investment method. Allocating investment in a proper proportion among various investment tools such as bonds, stocks and cash can reduce risks and improve returns. Because diversification and asset allocation involve a variety of investment industries and financial instruments, wealth billionaires suggest that investors should consult financial planners before making diversified high-quality investments. Investment risk is the performance of risk phenomenon in the investment process. Specifically, investment risk refers to the deviation between actual investment income and expected income due to uncontrollable or random factors from making investment decisions to the end of investment period. The deviation between the actual investment income and the expected income is the possibility that the former is higher than the latter, while the former is lower than the latter, or the possibility of both economic loss and additional income, which are all manifestations of investment risk. Investment is always accompanied by risks. There are different risks in different stages of investment, and investment risks will change with the progress of investment activities. The nature and consequences of risks in different stages of investment are also different. Investment risk generally has the characteristics of poor predictability, poor compensation, long risk existence period, great loss and influence, great risk difference among different projects, and coexistence and cross-combination of various risk factors.
Four. Risk management of venture capital projects?
The development history of domestic venture capital is not long. Objectively speaking, there are some congenital deficiencies in regulating the legal environment of venture capital circle, and there is a lack of qualified professional venture capital talents and venture capital experience. All these make China venture capital projects put forward special requirements for risk management of investment projects.
Current situation of risk management
1. Insufficient risk avoidance before investment. When investing in projects, venture capital companies in China all have insufficient short-term estimation to varying degrees, generally seldom use relevant quantitative analysis methods, and fail to properly handle and control the estimated risks, thus failing to avoid risks to a certain extent. In addition, due to lack of experience, the need to control investment risks is often not fully considered when drafting investment agreements, and there are many imperfections. For example, the investment agreements of some early venture capital projects did not set the clauses of "one-vote veto system" and "gradual liberalization of equity", which led to such problems after investment, lack of effective control means and even helplessness.
2. The information asymmetry is serious. China's venture capital is also facing a serious problem, which is the asymmetry between venture capitalists and interest rates. Theoretically speaking, the information asymmetry between venture capital and venture enterprises is still very serious because venture capital actively participates in the investment mode of venture enterprises to a certain extent, which can alleviate the information asymmetry to a certain extent. One reason is that China's corporate governance structure is generally imperfect, not only lacking a perfect system, but more seriously, entrepreneurs' awareness of governance structure is generally weak. For example, many entrepreneurs and shareholders publish relevant information. Therefore, there are great obstacles for venture capital to supervise investment projects. In addition, the lack of perfect credit risk in China is relatively high, which aggravates the information asymmetry and affects the control of investment risk.
Second, venture capital.
Since the development of venture capital in China, many venture capital companies have invested in many projects and accumulated certain venture capital practices.
1, which is seriously affected by insufficient funds.
At present, a common problem in venture capital projects in China is that there are many reasons for this situation, one of which is related to the investment mode of venture capital in China. In the early days of venture capital in China, joint investment was not taken seriously. Usually, when venture capital is in a venture capital company, there is a lack of detailed analysis of the funds needed for project development, which leads to insufficient investment, or there is a big deviation in project development and testing, which makes it difficult for investment funds to support the project to realize investment. According to the theory of venture capital, venture capital should be a baton investment, but few investors are willing to take over the enterprises invested by other investors, which makes it difficult for venture enterprises to raise funds in the second round. In this way, many venture capital companies lack funds for their projects, but venture capital companies are afraid of continuing to invest because they are worried that the investment risk will become greater after continuing to invest funds. Other investment companies think that you are unwilling to increase capital. It must be that the project is not good, so I don't want to take over and invest in such venture enterprises. So that the venture capital companies that invest can't retreat, and they dare not invest more, and they are in a dilemma.
Venture enterprises are in the development period, and the first round of financing obviously cannot solve the required funds. If they can't raise the capital needed for expansion, it will directly endanger the healthy development and even survival of venture enterprises. This dilemma is a typical investment project risk.
2. The single product structure leads to poor market adaptability of venture enterprises.
Many domestic high-risk projects have a single product structure and business, and their market adaptability is poor. When the relevant market changes or the competition is fierce, their income will be greatly affected. There are also some projects with advanced product positioning. The original market growth is slow, and enterprises have no other alternative products and income sources, so they can only wait for the development of related markets, which leads to the deterioration of financial situation and the formation of risks. The single product structure and the lack of long-term planning ability of enterprises are one of the main risks of venture capital projects in China.
3. The corporate governance is backward and the management ability is low.
The internal governance structure of most venture capital institutions in China is imperfect and the system is not standardized, which leads to low management efficiency and uncontrollable operating costs, which affects profitability. Investment enterprises lack the business philosophy of creating value for shareholders, which leads them to shield information from venture capital companies, increase information asymmetry and increase the investment risk of venture capital.
Some entrepreneurs have moral hazard, especially when the technology investor is an enterprise manager, there is often a phenomenon of artificially raising the operating cost of the enterprise or gaining personal gain by transferring assets. Due to the imperfect system, the control of moral hazard is limited. At the same time, some entrepreneurs are mostly technical experts, lacking management experience and weak comprehensive management ability, which affects the development of entrepreneurial enterprises.
4. Financial risks affect profitability.
There are many financial characteristics of venture enterprises, one of which is the high proportion of accounts receivable of venture enterprises, which affects the profits of enterprises.
Third, the way of risk management and coping strategies
1, management mode
First, adopt stricter legal constraints and add special protection clauses for venture capital in investment agreements. For projects that lack relevant binding clauses in the pre-investment agreement, when the investment projects increase capital or other events occur, they should be used as negotiation conditions, add new binding conditions, strengthen the monitoring of investment projects, and prevent and avoid risks. Because start-ups are generally in urgent need of the second round of financing, if venture capital companies are willing to continue to invest in this project, they can take relevant terms as the premise of continuing investment when negotiating with entrepreneurs for capital increase, thus strengthening the effectiveness of the regulatory terms in the investment agreement.
Second, promote the standardization of the internal governance structure of investment enterprises. Venture capital companies must consciously promote the improvement of the internal governance structure of venture enterprises and cultivate their awareness of standardized management. It is necessary to clarify the responsibilities and rights of the shareholders' meeting, the board of directors, the board of supervisors and the management, and to restrict the behavior of investors and operators by establishing and perfecting the system. It is necessary to establish modern enterprise management concepts and standardize enterprise management with advanced management means and methods.
Third, we should contract supervision by providing value-added services. According to the cultural habits of Chinese entrepreneurs, Chinese venture capitalists should adopt flexible strategies for risk management of investment enterprises. It is necessary to establish good relations with the invested enterprises, provide more management consulting and help introduce value-added services such as customers and partners. Exchanging services for the cooperation of investment enterprises is helpful to grasp the information of the invested enterprises in time and do a good job in risk management and monitoring.
2. Coping strategies
First of all, we should always pay attention to the financial situation of start-ups with insufficient funds or enterprises with poor prospects. For enterprises that have been or will soon be unable to support, it is recommended that venture capital companies stop losses in a timely manner by means of dormancy, merger and liquidation; For enterprises that still have development prospects, we should pay close attention to their financial situation to prevent entrepreneurs from harming the interests of investors; Provide effective market development help for entrepreneurs, and at the same time find strategic partners in technology, market and capital for them; For projects with good development prospects but insufficient funds, we should actively help contact loan guarantees to obtain bank loans, or increase investment.
Secondly, for enterprises with a single product structure, it is suggested to expand the product line as much as possible, or change the business strategy appropriately to open up new profit points. For enterprises that are still in the product development stage, we should have a deep understanding of the potential market of their products, and suggest increasing the product width and market adaptability during the development process, and adjusting the product direction and business model appropriately with the market changes.
Third, for enterprises with weak management ability, it is necessary to strengthen coordination and communication with management, export value-added services and management as much as possible, help enterprise managers improve their management level, or recommend professional managers to directly participate in management, urge the invested enterprises to improve their corporate governance structure, and help the invested enterprises establish and improve their internal management systems.
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