A Study On Mechanism For Withdrawal Of The Venture Capital In China

Venture capital is one of the most successful financial innovations in this century. Although it has been developed in China for more than ten years, China lags behind the develop countries in many aspects not only in scale and speed but also in efficiency and effect. Among those many reasons the most important reason is lack of effectual mechanism for withdrawal. A sound mechanism for withdrawal of the venture capital is a key to the success of the venture capital. The paper compares the three withdrawing channels for venture capital investment, and analyzes their advantages and shortcomings respectively. It also pointed out the ways that can be used in China. The paper focuses on the obstacles to the withdrawal of venture capital in China. Finally, several suggestions are given on the withdrawing of venture capital in China.