Study On The Legal Problems Of Venture Capital In China

Venture capital can be viewed as an investment behavior, and venture capital is equity capital. Venture capital investors put venture capital into high-growth company which is not listed, and participate in the management of its business, after the mature of the target company they will exit through IPO, M&A or other mechanism in order to realize capital gain. With high risk and high profitability, venture capital is the full circulation of capital. Venture capital plays an extremely important role in the process of economic development, and plays a key role in the development of SMEs, especially in high-tech industries. Venture capital industry is developing quickly, but we have to realize the negative factors, and the absence of the legal system is one of these factors. However, we need to clearly recognize that a sound legal system for the long-term and healthy development of venture capital. Therefore, first we should uniform legislation and improve the law level; Secondly, we should broaden the financing channels, allow insurance funds, pension funds become the main sources of venture capital under the guidance of the security policy; Finally, we should perfect the exit mechanism to ensure the smooth exit of venture capital, such as to perfect the GEM market, to perfect the applicable conditions of the share repurchase, to perfect the property trade market, and so on.