How to do a good job in venture capital financing

The importance of financial management in venture capital is self-evident, including the financial management of venture capital institutions themselves and the invested enterprises. In this process, human management and system design are the most basic work and the most important work link. After more than three years of practical activities, BVCC has explored a set of more effective management methods and means in the financial management of venture capital and formed a relatively perfect management system.

I. Personnel management

Venture capital, as a new thing produced by the combination of technological innovation and financial innovation in the knowledge economy society, its success depends largely on the management of people. People's financial management is the training and management of financial managers in this specific industry of venture capital. A perfect system is formulated by people, and its implementation and implementation effect depend entirely on people's quality and ability. If there is no suitable financial management personnel, it will not be able to meet the company's financial management needs for investment enterprises. Personnel management is manifested in:

1, strict selection criteria. It should be said that the company's current selection threshold is not low. The first recruitment requirement for financial personnel requires good personality, honesty, dedication, responsibility, love and enthusiasm for work. Second, a bachelor's degree in accounting is required, with three to five years of work experience, and certified public accountants and master's students are preferred. Over the past two years, BVCC has recruited a group of financial managers with expertise, good professional quality and strong independence, of which more than half are certified public accountants and master students. The good quality of financial personnel is the key for the company to send financial managers to investment enterprises to protect the company's interests.

2. Implement a regular reporting system. Generally, financial managers of venture companies are sent to work in investment enterprises every day, and the finance department holds ministerial meetings once or twice a month to report and exchange the financial status and management experience of investment enterprises. Important financial information is compiled into documents and reported to company leaders and relevant business departments to facilitate the company's management of investment enterprises.

3. Implement a regular training system. It should be said that the financial management of venture capital companies is different from the general financial management, which requires high financial foresight and comprehensive financial management ability. With the continuous improvement of the market economic system, great changes have taken place in accounting and financial management. In order to keep up with this change as soon as possible, the company's financial department needs continuous training. Regular training system is to adapt to the changes of accounting system and update its knowledge structure at any time; Second, close to international practice, strengthen the understanding of international accounting standards to adapt to the pace of internationalization; Third, we should strengthen our understanding of the trend of science and technology and the development of accounting profession, such as conducting a series of special trainings on the comparison of old and new accounting systems, enterprise value evaluation, tax policy comparison between domestic-funded enterprises and joint ventures, network and accounting, and the similarities and differences between China accounting standards and international accounting standards.

4. Pay attention to summarize the research results. Venture capital industry is a new industry developed in China in recent years. In the practice of venture capital, the company has encountered various problems, such as financial evaluation of venture capital projects and financial management of investment enterprises. We summed up our thinking on these issues in practice, and formed the Financial Analysis and Evaluation Model of Venture Capital, Review of Pre-tax Deduction Items of Enterprise Income Tax, and Discussion on Financial Management of Venture Capital Enterprises. The results of the research and summary have made everyone gain a lot, which not only improves their theoretical level, but also has guiding significance for the next work.

Second, the system design

Designing financial management system is to ensure the effective implementation of investment enterprise management through certain procedures and systems and certain rules and regulations. The financial management of venture capital should be a system. For investment projects, it begins at the stage of investigation and demonstration, ends after the withdrawal of project capital, and runs through the long cycle from capital-capitalization-capital of venture capital companies.

1, financial evaluation before investment

Financial evaluation before project investment is very important, which is related to the determination of investment project value. Projects without great value are not worth investing, but where is the value of investment, and is it true and reliable? This can not only be judged qualitatively according to whether the technology of the project is advanced, but also need to evaluate the economic feasibility and investment value in detail. Financial evaluation is an important part of it. The economic feasibility of lack of financial evaluation is questionable. In the company's investment decision-making procedure, one of the links is that the financial department participates in the feasibility demonstration of investment projects and issues financial audit opinions. The company has formulated a set of standard due diligence-financial feasibility analysis working papers, which describe the details from the completeness of data collection to the identification of assets, liabilities and rights and interests, making the investment evaluation work rule-based, and playing a role of both prompting and demanding for the demonstration process of investment projects. Whether the pre-investment investigation and understanding of investment projects are sufficient, whether the judgment of their value is accurate, whether the pricing is reasonable, and whether the negotiation conditions are favorable directly determine the difficulty of post-investment management, and also determine the size of profit-making space when exiting in the future. Therefore, due diligence and various audits before investment are very important. The financial department can issue financial audit opinions on the feasibility report, analyze the investment value of the project from different angles, avoid investment risks, and provide reference for leadership decision-making.

2. Dynamic financial management of investment enterprises

Investment project management is a necessary stage for venture capital to realize value-added. When signing a contract with an investment enterprise, a general company specially designs an agreement on financial management from the perspective of financial audit and supervision, including an agreement for a venture capital company to appoint a financial manager, an agreement for an accounting firm to audit, and an agreement for shareholders to publish financial information on a regular basis. These necessary legal documents ensure the management and supervision of venture capital companies to investment enterprises from the system, thus better ensuring the income rights of venture capital companies in investment enterprises.

Third, management means.

In the concrete practice of financial management, the implementation of cross-network management can not only ensure a comprehensive understanding of the dynamics of investment enterprises, but also control some core enterprises centrally. In terms of management methods, the financial department has made some useful discussions. At present, the company has the following financial management methods for investment enterprises:

1, dual-term joint system for financial managers

Since its establishment, the startup company has implemented a unique double-term countersignature system for financial managers of investment enterprises, which is jointly countersigned by the financial managers of investment enterprises and the financial managers of project parties, so as to dynamically track and manage the economic activities of enterprises and ensure the economic interests of the company. Companies that are relatively mature and have their own independent and perfect financial accounting system are more suitable to adopt this model.

2. Single appointment system for financial managers

The single financial manager system means that we send the only financial manager to manage the financial activities of investment enterprises. The advantages are strict control and low management risk, while the disadvantages are that an enterprise has only one financial manager and the management cost is high. This management method is suitable for newly established large companies, investment enterprises in which our company holds more shares, or enterprises that have greater influence on our company. The Hua Nuo Company invested by our company adopted this financial management mode.

3. Agency bookkeeping system

For some relatively small venture capital projects, as an extension of the company's financial management, we adopt the method of agency bookkeeping to reduce the management cost accordingly.

4, the way of intermediary audit.

There are also some projects that are managed according to the needs of the company by hiring an intermediary agency that we trust to audit.

5. Database management mode

In the fourth year, venture capital companies have invested in more than 40 projects, and the dynamic management and monitoring of projects are really getting harder and harder. We need to achieve effective management and control of investment projects under the existing management costs. Therefore, we try to use the way of investment management information system to carry out horizontal dynamic management, that is, to use the database being established by the company to realize the dynamic understanding and mastery of the financial situation of the company's investment projects. Judging from the financial function of the current database design, * * * has a three-level financial data system, one is a large number of basic financial data, which is the basis for analyzing and judging the operating conditions of enterprises, and the other is various ratio analysis data automatically generated by the system. Through the analysis and understanding of various ratios, we can grasp the dynamic financial situation and trend of enterprises. Third, design an early warning system based on first-hand and second-hand data. For example, if the cash holdings of enterprises are less than three months' consumption, the system will automatically issue an early warning. We hope to meet the needs of all kinds of personnel in the company in project management through the dynamic reflection of database specifications and standards.

The financial management of venture capital is a new topic. People engaged in this industry need to learn from international experience and combine the investment practice in China to explore and improve the specific management mode.