Venture Capital

Under the modern economic condition, technological change becomes the main factor of economic growth. To realize the technological change can not do without the support of the finance. Venture capital, arranged as one new monetary system, plays a very important role in promoting technological change and it is known as" the engine of economic growth". Modern venture capital evolved from American in the forties the 20th century, and made enormous success in America. Microsoft, Cisco, Kodak, Apple computer, etc., developed from unknown small enterprise into a world-famous large-scale trans-corporation with the aid of venture capital support without any case. During the seventies and the mid eighties of the 20th century, venture capital was adopted as one perfect new financial mode by Europe and some country or district of Asia, Britain, France, Germany, Israel, Singapore, Taiwan of our country, etc. for instance. Enter 21st century, no matter in theory of investment, or at the main parts of investment, investment way or investment arrangement, venture capital has presented a new development trend.Venture capital evolves in China from middle period of the eighties of the 20th century, but its real development began after the Central Committee of China Democratic National Construction Association put forward" About Accelerate the Development of the Venture Capital In Our Country" at the beginning 1998 on the First Session of the Ninth CPPCC National Committee that held motion. For a long time, economic growth of our country has been relying on the input of resource mainly, technological change relative contribution rate in economic growth was only about 30%, far lower than the economic developed country by 60-80% of the levels, but also have certain disparity with average 35% of the levels of developing countries. In order to bring about an advance in economy, our government has put forward two basic transitions, namely economic system should be transformed from traditional planned economic system into socialist market economy system and changed with the style of economic increase from extensive style to the intensive style. To realize the transition of the style of economic increase, we must payattention to technological change, developing Hi-Tech, promoting the industrial structure. To develop venture capital energetically has the necessity and urgency in our country.This thesis starts with the definition and characteristic of venture capital, expounds the fact of the cycle of venture capital fully, summarizes experience of economically developed countries and regions, and the venture capital development trend. At last, we propose some countermeasures for the development of venture capital in our country from system environmental construction, widen capital source channel and specialized personnel training three respects.This thesis is made up of 5 chapters altogether. Chapter 1 is the introduction, which described the relationship between economic growth and technological innovation, the role of venture capital in technological innovation mainly, and definition the concept of venture capital, an analyse on modern venture capital's basic characteristic are included.Chapter 2 introduces the cycle of venture capital mainly. Venture capital, arranged as a kind of special financial system, has its specific cycle. Should first raise the fund from the specific irrigation ditch, set up specific organization; select pioneering enterprise of project type through strict procedure and methods to make the investment; at last, withdraw from IPO, way merged or clearing finally to enter the next circulation.Chapter 3 expounds the beginning and the development of venture capital, analyzes the development trend of venture capital after summarizing the experience of countries and regions all of the world. The pursuit of the whole Society for the risk assets, transition style of economic increase, budget restrain theory and contacts theory offer a strong motive power and theoretical foundation for the birth of...