The Role Of Government Guided Fund In Venture Capital Ecosystem

Since 2008,China began to set up a large-scale government guidance fund,its leading and leading role has gradually strengthened,and its attention in the venture capital market is also increasing.The purpose of setting up government guidance fund is to leverage social funds,introduce other venture capital into strategic emerging enterprises or government supported industries,so as to promote the development of regional enterprises and venture capital market.At the same time,there are a series of problems,such as the effect of VC investment policy and market regulation,which is not balanced between VC and regional investment policy.From the perspective of organizational ecology,this paper studies the competitive symbiotic relationship and mechanism between government guidance fund and general venture capital,and explores the ideas and methods to effectively regulate the scale of general venture capital and maintain the balance and stability of venture capital ecosystem by using guidance fund.Based on the perspective of organizational ecology,this paper constructs the research framework of venture capital in China,and expounds the influence of government guided funds on venture capital industry.According to the research idea of "literature induction theoretical analysis empirical analysis simulation research summary suggestions".Based on the theory of organizational ecology,this paper expounds the influence mechanism of government guidance fund on general venture capital and the function of the whole venture capital industry.Based on the framework of theoretical analysis,this paper establishes a population evolution model with the data of all venture capital events from 1999 to 2019 as the research samples,and uses the dynamic panel regression(GMM)method to investigate the influence mechanism of government guided funds on general venture capital in different developed regions of China.Then,the competition symbiosis model of population dynamics is established.The nonlinear least square regression(NLS)and grey estimation are used to analyze the competitive symbiosis relationship between government guided fund,ordinary venture capital and foreign venture capital fund.Then,the differential equation is solved by MATLAB software to simulate and analyze the regulatory effect of guiding fund as a policy tool on the whole venture capital ecology 。 The empirical results show that,as a policy tool to promote the scale growth of general venture capital in the region,the effect of government guidance fund is obvious and has the upper limit of optimal value.However,the reputation risk of government investment and the crowding out effect of social capital caused by too many guiding funds are negative.At the same time,the government guidance fund can regulate the fierce competition between the regional general venture capital and foreign venture capital,so as to maintain the balance and stability of China’s venture capital ecosystem.Finally,based on the results of the study,the following suggestions are put forward: first,the governments in the developed regions of venture capital should adopt the measures of increasing the profit level of guiding funds and relaxing the restrictions of government guidance funds on foreign capital to maintain the stability of the regional venture capital system.Second,the government should expand the scale of guiding fund and improve the laws and regulations of local venture capital system to promote the development of venture capital industry.The innovations of this paper are as follows: first,we use the perspective of organizational ecology to study China’s government guided funds.At present,although foreign scholars have used this perspective to study foreign venture capital market,there are few domestic studies on China’s venture capital market from this perspective.Second,we use the population evolution model to study the one-way mechanism of government guided funds on the scale of ordinary venture capital,and establish a visual model diagram through MATLAB software to reflect the role of government guided funds more intuitively.Thirdly,the paper establishes a multi group competition symbiosis model to empirically analyze the relationship between government guided fund and social venture capital,and uses MATLAB software to simulate the policy of government guided fund to reflect the effect of guiding fund more intuitively.