A Research On The Venture Capital Mechanism Of China Film Industry

Since the beginning of the twenty-first century, the film industry of China has accelerated the developing and acquired very important status in all the cultural industries. At the same time, China film industry has encountered the challenge from other countries, such as America and Korea. With that pressure, it's necessary for China film industry to develop much faster and get a much larger scale, which is the only way to survive the competition. However, the speed of developing is restrained by the serious lack of financing, which represents four smaller problems: the difficulty of finding financing for a film producer, the difficulty for the creativity resources to combine the capital, the small industry scale and the irrationality of investment structure for the entire industry. Moreover, the absence of sufficient financing and the predicament of China film industry have been strengthened by each other, which makes the problem inextricable.The lack of financing in China film industry has attracted the attention from many investigators, most of whom agree that the sufficient financing will be the key to increase the developing speed of China film industry. The researches focus on the financing problems concerning film production, film distribution and film screening. Most of the domestic researches are based on the actualities of film financing. They sum up the problems and bring forward many advices from the macro-perspective, some of which is constructive, as well as instinctive. However, in most of the researches, theorized tools and integrated system are absent. Just few of the investigators prefer concrete film mechanism rather than the entire industry as the object to study. As to the methodology, the microeconomic tool is rarely used and a mathematic model usually doesn't exist in these studies. Therefore the domestic researches have just got few systematic and convictive conclusions. On the other hand, oversea researches on the film investments and financing use sociological and economic tools prevalently. But they concentrate on film industries in America or some European countries, which means we can't use their conclusions directly.This essay chooses a part of the film financing problem in China, the lack of financing in film production, as the object to study. Firstly because most of the features of entire film industry as a creative industry, like high-risks and high profits are also owned by film production. Secondly the financing for film production is always the most difficult thing among all the film industry. When most of the other investigators refer to"the problem of film financing"generally, they mean"the problem of film production financing".In my study, the theory of investment is continually used. The theories of item investment and venture capital are the most important foundation of this essay. And the game theory and micro-economics are the primary tools. I tried to use proved and systematic theories to examine the fact, reduce and get convictive conclusions.