A Study Of Venture Capital Exit In China

Venture Capital exit is the most important part of the whole Venture Capital market. The market will be larger only if the capital can exit from the investment projects. It is known that advanced Venture Capital market will contribute much to one country's high-tech industries.This paper describes the venture capital exit system from both macro and micro insights in China. We find that there are limits to all kinds of exit ways: IPO, M&A, buy-back and write-off. But we also discover that foreign Venture Capital can get rid of these limits through some way. From the micro point of view, this paper gives the ways through which venture capital can exit better. These ways can be used for practical operation. At the meantime, this paper analyses the exit operation in both theory and practical ways. Also this paper does a lot of research about the reasons why the legal environment limits the Venture Capital exit in China. It also gives some advices to get rid of the limits. At last we talk about two practical cases and try to find the reasons why they exit successfully from practical view. The two cases representative the IPO and M&A ways.The paper also gives the advices on how to develop the Venture Capital market in China. It advises that China must build the real growth enterprise market. On the other side, China must develop the law system and cancel the limits to Venture Capital exit. Only in this way the Chinese Venture Capital market can develop quickly and contribute much to Chinese high-tech industries and the whole economy.A summary is drawn at the last part of the paper. First, the exit ways of foreign Venture Capital and domestic Venture Capital are different. Second, there are some ways to improve the exit ways of Venture Capital in China. Last, China must improve its Venture Capital market and legal system. At the same time, some advices about how to do deeper research on this subject are stated. There will be better on this subject research if more date about China Venture Capital market can be got and used.