China's Venture Capital Model Of Development And Means Of Research,

Venture capital is essential for keeping sustainable technical innovation and national power of competition. This paper is about how to develop venture capital in China. On the basis of looking back on the course and status quo of the development of China and foreign venture capital, this paper analyses the opportunities and challenges that China now is facing with in venture capital area. It also puts forward five questions: [.question on main body of venture capital 2. .question on functioning 3 question on quitting mechanism of venture capital 4,question on developing circumstance 5.question on qualified personnel.To counter these questions, the author thinks that China should change traditional investment idea, investment way and really appreciate non-governmental capital in order that she can develop venture capital well. And China should adheres to four principles, that is, principle of government-subsidence;, principle of institution innovation guaranteed;, market-mechanism cored principle; non-governmental capital as main resources principle.Though the method of uniting theory with practice, the paper puts emphasis on the theoretical intention, the principal model and the main developing approach of venture capitals in China. Comparing the system of China and foreign risk investment and venture capital investment, the author raises his new definition of venture capital. He holds that the crux of the venture capital is three kinds of integration, the first is integration of financing and innovation, the second is integration of investment and financing, the third is capitals and management. After discussing the above five aspects, the author thinks that in order to develop venture capital with Chinese characteristics, the overall model for China should be "subsidized by the government and run by the non-governmental capital". It needs to adopt eight approaches, and three of which are urgent. They are establishing venture capital fund, creating external environment and improving quitting mechanism.