Analysis On The Performance Of Venture Capital Industry

Venture capital has grown over half of a century, and it has been two decades since it was introduced into China. And , therefore, it has become an important subject attracting the interest of many people. However, our knowledge about the performance of venture capital industry still remain at the qualitative level, and return and external economy that consist of performance of venture capital industry has not been examined carefully enough.Firstly, the paper examines return and external economy of venture capital industry based on data from the main areas of the world, and we analyze the important determinants of the industry performance from inherent factors to external environment by "Structure-Conduct-Performance" model. Inherent factors include market structure and investment conduct, and external environment includes economy development, high-tech industry foundation, law and policy, and capital market. After empirical study, we find that the industry performance, market structure, investment conduct are interrelated, and they are all influenced by external environment.Secondly, we summarize the analysis model on the performance of venture capital industry, and demonstrate that we should stress the factors such as property right and industry policy when we analyze venture capital industry in our country. Following,we investigate return, external economy, characters of market structure and investment activities of venture capital industry in our country, and its external environment such as economy development, high-tech industry foundation, law and policy, capital market, as well as the interdependent relations of these variables.Finally, we discuss what government, venture capital institutes, venture capitalists and investors should do in order to improve the performance of venture capital industry in our country on basis of the its characters.