Venture Capital Decision Based on POC Framework

Venture capital investment is considered a high-risk, high-return asset class. It helps enterprises, especially start-ups, to broaden the business and increase company value. In this article, we research to evaluate the investment valuation of Trans Tech, a state-owned company working in the ETC industry. Firstly, we analyze the main business and profit situation to look into its operation conditions and development prospect. Then it comes to the key point in our research: Competition analysis with POCD framework. In our investigation of the company from three perspectives (people, opportunity, and context), the framework has shown its advantages for its requirement to understand plentiful information about the company, such as its establishment background, developing history, and present operation management. We find out it has a professional and mature core team, a bright market prospect, and strong and stable policy support, a crucial factor of ETC. And through the POC framework, it comes out that Trans Tech has merits that outweighed its demerits. Therefore, we decided to invest in the IPO of the company.