The Study On The Exiting Mechanism Of China's Venture Capital

This paper mainly focuses on the analysis of China's venture capital exiting. Because of the unperfected capital market, unsystematic law and policy, the transition to market economic, the exiting mechanism of China's venture capital is actively probed into. It will help to exit easily and make the return to the maximum.The innovation of the paper is initially expounding the evaluation mode of success degree to venture capital and giving the evaluation standard, i.e., Sr=NPV/CC (Sr=success degree; NPV=net present value; CC=finance capital), if Sr 3,it shows the venture enterprise completely success.The paper is studied by comparative research, case analysis and positive research. It consists of four sections. The first section, including chapter one, introduces venture capital's theory, America's and China's development condition, and the exiting mechanism of venture capital. The main research domain is the second part. It includes chapter two, three and four. It analyzes the main exiting obstacle to China's venture capital, i.e., internal and external obstacle. The exiting ways of China's venture capital is detailed studied and divided into three categories. Each category is subdivided into many mini-categories, giving the advantage, disadvantage and classical case. At last, it analyzes how to choice the exiting timing of venture capital. The enterprise's equity increment and the settled exiting condition can be determined by introducing option-pricing theory. The third section is chapter five. There are three methods of valuing venture enterprise, i.e., classical DCF, the first Chicago Pricing and NPV. The evaluation mode of success degree includes a simple mode and evaluation standard. The last one is chapter six. Some result and suggestion is given on the basis of above analysis and research.According to these researches and America's successful experience, some result is given as follow: When the venture enterprise is very successful, it will be listed on the main board. If it doesn't reach the main board-listing standard, it should be listed on the second board of overseas. When the venture enterprise is common, the exiting of venture capital isn't urgent. When the venture enterprise is breakdown, it must exit immediately.