The Investigation And Practice Consideration Of Venture Capital

Venture Capital is one of the most active, creative and legendarily hotspot of investment. The paper is based on lots of author's practice and case analysis about foreign and domestic data and facts. It puts emphasis on the integration of theory and reality after thorough description of Venture Capital's basic concept, investment object and operation process via table conclusion, experience summary, problem discussion and solution consideration. Also, the paper lays stress on the characteristic of Venture Capital ,illuming prosperous Chinese Venture Capital company and financing corporation ,accelerating its development process through the case analysis on the successful foreign IT example ,that is, searching engine－Yahoo .Furthermore, the four most representative Chinese corporations succeeded in Venture Capital financing since 1999 are shown to expose their respective feature and experience and help Chinese practice. Also, according to the China's current situations, the four most representative Chinese corporation succeeded in Venture Capital financing since 1999 are shown to expose their respective feature and experience and help Chinese practice .At last, Chinese Venture Capital's existing thee obstacles are considered such as weak market basis, lack of laws and regulations and lack of stock market and equity market for exit. Several helpful suggestions are proposed including building up multi-level stock market and taking advantage of GEM (HK venture board).It is known that the rapid Asian economy recovery, Chinese plentiful technical employees and China's entry to WTO have supplied unheard-of chance to develop Chinese Venture Capital, especially in the GEM and NASDAQ market. If China can master the rules of Venture Capital and cherish each chance ,it is bound to promote China's economy development. Chapter 1 states the basic theory of Venture Capital., which invests in the high-tech and neonatal fields containing comparatively high failure risk ,expecting to attain high return rate of capital. Its characteristics include: (1).Be a No-guaranty and Risky Investment (2).Be a Portfolio Investment (3).Be a Long-term Investment short of liquidity (4).Be a Equity Investment (5).Be a Professional Investment combining both finance and science ,funds and management. Initial public offerings ,stock transfer and company clean-up are its three exits. In addition, readers can have a more correct and clear knowledge through rectification on the misunderstandings of it. Chapter 2 gives readers a quantitative recognition about Venture Capital by means of income and table analysis on the American public offering companies since 1990 on the basis of primary theory. Whose description of investment object is the standard measuring China's financing corporations. Chapter 3 thoroughly analyzes the four procedures(seed stage, start-up stage, grown-up stage and maturity stage)of Venture Capital based on the typical case---searching engine: Yahoo. It gives readers a perceptual knowledge by the illustration of actual data and development process. Simultaneously, the summary on the respective stages in the form of tables is convenient to be compared. The organization forms and operation styles stated in this chapter are the key to master the outlines of Venture Capital. Chapter 4 emphasizes particularly on the China's reality. The valuable experience and successful features are generalized from four successful Chinese companies :special localization service of sina.com, creative e-business modes of alibaba.com, methods of public offerings in the shell of another public-holding companies and international management class of china.com. For example, good business modes and ideas, advanced mechanism and measures and international management class are all very helpful to China's related industry. Furthermore, it is also introduced that the introduction of Venture Capital to China and the concrete process of China's attraction of it.Ch...