Construction of forewarning risk index systems of venture capital based on Artificial Neural Network

Abstract

The risk evaluation is a very important step of decision process of venture capital. This article constructs forewarning risk index systems of venture capital, and applies Artificial Neural Network (ANN) to forecast the latent risk level of venture capital. Empirical analysis indicates that this model could predict the latent risk of venture capital very well. © 2006 International Federation for Information Processing.