United States, Germany Venture Capital Research

Through the essence of the venture capital, its evolution and operation, we think that venture capital is perfect combination of capital, technology and professional, and that a hybrid of economics, finance, science&technology, education, governmental behavior, social and cultural environment. The venture capital in U.S. is spontaneous, government-backed and market-acted, in Germany, otherwise, it is emulated, government-driven, and market-reacted. Our comparing and analyzing the two developmental modes from the perspective of financial system, science&technology system, governmental behavior and social and cultural environment, coupled with the siluation of our country, it will be helpful to the development of venture capital in our country.The financial system of U.S. is capital-market-dominant; Germany's is omnipotent-bank-dominant. The spirit and financial prerequisite of the venture capital is consistent with the U.S. financial system, i.e., the capital-market-dominant financial system is more helpful to the development of venture capital than the omnipotent-bank-dominant financial system. The science&technology system has effect on the development of venture capital because it affects decisively the ability of technological innovation. The input, allocation mode and structure of scientific resources in U.S. and Germany are the same, their ability of technology innovation is enough to support their respective development of the venture capital. Both of the U.S. and Germany government intervene the development of venture capital and create backup environment, but the bound and strength of their respective behavior are different. American society approbates and encourages pioneer and venture, otherwise Germany society put a premium on reason, social estate and preciseness. Social and cultural environment in Germany is inconsistent with the spirit contained in venture capital, so it retards the development of the venture capital.Learned from the experience of U.S. and Germany in related to venture capital, we should: (1) in order to make a capital-market-dominant financial system gradually, reform the financial system from appropriate facets, (2) in purpose of boosting the ability of technology innovation and training professionals, increase the input of science&technology resources and improve the allocation mode, (3) call the government into play in institution changes: give and attract venture capital, sustain and raise the technological innovation, train and bring in professionals, give great publicity to the pioneer and innovation, (4) make a sustaining environment suitable for the development of venture capital...