Risk Analysis and Management Strategies for Entrepreneurial Investment

Abstract

In the current economic environment, venture capital is not only a key driving force for technological innovation, but also an important means of promoting economic growth. However, the essence of venture capital involves high risk and high return, which requires investors, entrepreneurs, and relevant policy makers to conduct precise analysis and effective management of risks. This article aims to construct a comprehensive risk management strategy by analyzing the multidimensional risk factors of venture capital, including market risk, technology risk, team risk, and policy and regulatory risk. Through extensive review of relevant literature both domestically and internationally, combined with empirical data and case analysis, this study designs and establishes a risk assessment framework based on mathematical modeling. This framework not only comprehensively evaluates the risks of entrepreneurial projects, but also quantifies the degree of impact of various risks. Based on this evaluation model, the study further explores diversified strategies for entrepreneurial investors to cope with risks, such as portfolio optimization, risk diversification, and fund allocation recommendations, in order to reduce potential risks and improve investment efficiency. The innovation of this study lies in the application of advanced mathematical modeling methods to venture capital risk assessment and management, providing investors with scientific decision support tools, and providing new perspectives and practical guidelines for risk management research in the field of venture capital. The expected outcomes include publishing relevant academic papers and providing practical risk management strategies for investors, entrepreneurs, and policy makers to promote the healthy development of the entrepreneurial ecosystem.