SVM-based venture capital management team performance evaluation model

Abstract

With the launch of fund of fund as well as the growth of private and institutional investors, demand for professional venture capital (VC) management team for China's VC market is day by day on the rise thus performance evaluation on VC management team has attracted great attention in VC research area. Currently, it has not yet established a systematic VC management team performance evaluation system, neither had an authorized evaluation method. In combination of literature review and interview with senior experts in VC industry, this paper proposes a performance evaluation system suitable to China's VC management teams based on Balanced Score Card(BSC), which contributes both to investors and VC management team themselves. Meanwhile, Support Vector Machine (SVM) is introduced into the performance evaluation, and the evaluation issue is transformed to a classification issue. The result shows that SVM-based VC management team performance evaluation model has superior evaluation effects compared with traditional evaluation and classification method, to some extent easing the evaluation problems such as high subjectivity, weak extension ability and small volume samples.