Abstract

The due diligence of government sponsored venture capital FOFs includes policy-compliance due diligence and that of business. Policy-compliance due diligence aims to assess whether do invested funds（baby funds）meet the FOFs'policy goals while business due diligence serves for the ROI evaluation of invested funds. Generally, the due diligence procedures include preliminary check, self-assessment, data collection and prevaluation, field due diligence, compliance assessment and error correction, business assessment, deep due diligence and summarizing. Accordingly, a working paper is needed to run through the whole processes.

The risk controlling system design of government sponsored venture capital FOFs should include preevent risk control and that of mid-event in order to manage policy-compliance risks and business risks effectively. As proposed in this book, assessment, error correction, risk identification and controlling preplan are common measures of pre-event risk control while mid-event risk control relies on information acquisition, process supervision, periodic assessment, risk forecast and the adjustment of supervisory measures.