The Research On Exit Mechanism Of Venture Capital

Venture capital is a kind of equity capital which is invested into the venture-backed companies of high-tech in order to gain superprofit. When holding a period of the stock, venture capitalists will consider the exit of venture capital so as to carry on a new investment plan. So a perfect exit mechanism of venture capital becomes the key that investment return can be got successfully. As our high-tech industry progressing, I think the research of Chinese exit mechanism can hope to develop Chinese venture capital investment.The exit mechanism of venture capital involves two respects, the ways of exit and the markets of exit. The thesis compares the ways of exit, and evaluates the situation of exit mechanism of venture capital in China. At last it comes to the conclusion that China must use the experiences of U.S. and Germany for reference to form a maturity exit mechanism by opening up the exiting ways and perfect the environment of exit. The main contents of the thesis are as follows:The introduction sets forth the background of the thesis and the study intention. Also it sums up some research findings about the exiting ways, asymmetric information and the Growth Enterprise Market.The first chapter summarizes the content of exit mechanism. It compares four ways of exit with dynamic and static factors, and comes to conclusion that each way of exit has advantages and disadvantages so an exit mechanism having all types of exiting way can help to develop venture capital investment.The second chapter introduces the exit mechanism in U.S. and German. And it brings forward the viewpoint that the exit of venture capital is affected with finance system, development of capital market, policy of venture capital and other factors.The third chapter points out the intractable problems in our current exit system, which is legal restriction, faultiness in capital market, inefficiency in transaction of property rights and absence of an efficient service environment.The last chapter puts forward some advices to solve the problems of our exit mechanism, such as learning from U.S. to perfect Chinese Small and Medium Enterprise Board market, making the best of foreign second board markets, developing Chinese property right market and counter market. Otherwise, ourgovernment must create a favorable policy circumstance for venture capital to quit.