AN ANALYSIS OF THE VALUATION OF CHINESE EMERGING INTERNET COMPANIES BY VENTURE CAPITAL FROM THE PERSPECTIVE OF USER RELATIONS

Abstract

In China, hot money is constantly pouring into the financial field, which is also the era when the Internet wave is emerging, and the intersection between these two fields is also very dense. Appropriate valuation methods will ultimately help to enhance the competitiveness of venture capital in the same industry, but Internet companies are different from the traditional industry’s operating methods. Based on the company’s relationship with users, it tries to value emerging Internet companies. A good way. The purpose of this research is to better understand the use of relevant user data in valuation behavior, especially for emerging Chinese Internet companies, whose scale and business distribution are very representative on a global scale. Nowadays, dealing with user relationships is very important for Internet companies, because it helps bring more revenue to the company and a higher valuation for the company. This research enables venture capital based on the Chinese mainland market to fully realize its potential in the concept of user relationship. The purpose of this study is to determine the factors that influence venture capital's use of user relationship data in the valuation of emerging Chinese Internet companies. After the findings were discovered, factor analysis was used to investigate the correlation. Between the independent variable and the dependent variable. According to factor analysis, the KaiserMeyer-Olkin sampling adequacy measure is 0.663. In the correlation analysis, it shows the independent and dependent variables. These important variables include the cumulative downloads of users, the initial growth rate of user refinancing, the average user activity in the three months before the financing behavior, the contribution of average monthly active users to per capita operating income, and the valuation of emerging Internet companies. For multiple regression analysis and analysis of variance, it can be concluded that in the early valuation of emerging Internet companies, user relationship data is the most effective, and each variable in the measurement has a positive impact on the valuation at this stage. In the medium term, user data seems to be less applicable. Venture capital at this stage emphasizes the profitability of Internet companies. In the late and early IPO period, based on the user relationship perspective, venture capital pays more attention to the cumulative user downloads and MAU of Internet companies, because these two data most intuitively reflect the business breadth and depth of the investment target.