Limitations and Innovative Directions of Asset Pricing Theory Applied to Venture Capital

Abstract

All aspects of the world today have undergone tremendous changes due to the rise in economic capacity and technology, and the impact on venture capital and technological innovation is particularly evident. The rise of venture capital has facilitated technological innovation and made it a key driver of economic development in the world today. The rapid growth of venture capital and technology industries has brought the advantages of economic value to the forefront, but, as the actual situation in venture capital activities cannot be accurately controlled, which leads to some inevitable inapplicability in the application of asset pricing theory. Based on this, this paper takes asset pricing theory and venture capital as the main object of research, analyzes some limitations of asset pricing theory in venture capital, and points out the innovative direction to achieve better development of venture capital. Here, we hope that the research of this paper can contribute to the healthy development of venture capital industry.