In the board of directors of venture enterprises, venture capital funds will demand more decision-making power and sign corresponding supervision contracts with enterprises, which makes venture capital funds not only investors in the traditional sense, but also shareholders who hope and can make suggestions for the business development of enterprises. However, the contract supervision of enterprises is not perfect because of the incompleteness of contracts.
Second, supervise the venture enterprises through phased investment (analyze the real purpose of mainstream funds and find the best profit opportunities! )
The rounds of venture capital are closely related to the life cycle of venture enterprises. When the net present value of the investment project is negative, the phased investment makes the venture capital fund retain the right to give up investment, and at the same time, it also encourages entrepreneurs to work harder. This actually makes the venture capital fund a valuable choice.
Three. Supervise venture enterprises through the board of directors.
In this form of supervision, venture capital funds are different from ordinary institutional investors. Most institutional investors have no seats on the board of directors. They only care about the composition of the board of directors, the working relationship between CEO and manager, and maintaining the independence of the board of directors. Venture capital fund is different, it is more inclined to become an important shareholder in the board of directors.
Four, through close contact with managers to supervise venture enterprises.
In addition to attending shareholders' meetings, venture capital funds spend part of their time in contact with the management of venture enterprises every year. Especially in the growth period of enterprises, venture capital funds need to spend a lot of time hiring and selecting management teams, improving the capital structure of enterprises and making business plans. Because the management level of growth enterprises is very scarce relative to technology. It is very difficult to accurately measure the relationship between the supervision of venture capital funds and the value-added of enterprises. From the perspective of venture enterprises, it mainly depends on whether financing contributes to the formation of enterprise professionalism in the early development stage of venture enterprises. Hellmann(2000) draws a conclusion through the study of American venture enterprises: the formation of the professionalization of venture enterprises is related to the following factors: the recruitment process of enterprises, the human resources policy, the formulation and implementation of equity plans, and the working ability of managers in production and marketing departments. Through the analysis of these empirical variables, they found that the intervention of venture capital funds will greatly increase the role of the above factors in the formation of enterprise professionalism and accelerate the formation of enterprise professionalism. Another way to study the value-added effect of venture capital fund on enterprises is to study it from the perspective of venture capital fund itself.