On The Legal Issues Of Foreign Venture Capital In China

With the rapid development of high-tech industry, it is the high-tech oriented comprehensive competition that matters between the different countries, and the venture capital which is intensively related to the high-tech industry is emphasized accordingly. In the now days, the research and practice in the foreign venture capital in our country is making a progress actively, also there are some legal problem in this domain which is a obstacle for the foreign venture capital to develop quickly, steadily. The author makes research in the foreign venture capital from the angel of law, for the purpose of enlightening and introducing.There are two parts in the paper, the background knowledge is introduced in the former three chapters, starting with the conception and character of venture capital, introducing the propelling role and developing condition of foreign venture capital. As the emphasis of this part, the author makes a research and debate in the chapter three. Our country is absorbing the foreign capital to resolve the shortage of investing experience and capital resource, so it is necessary to have a general acknowledge of the international condition, including the successful experience and failure lesson for the purpose of our country's learning. Firstly, the author makes introduction of the capital resource, organizing module and quitting system of international venture capital which are the problems that all the other countries should confronted, secondly, the author has researched the foreign venture capital in China from the point of legal angel, last, the author put the emphasis in the authorizing, organizing and quitting system of foreign venture capital in China.From the point of whole paper, the author put the emphasis which is also the most difficult place in the later two chapters. According to the author's opinion, the problems lying in the foreign venture capital domain are focused in the organizing and quitting mechanism. Firstly, we can understand through the practice of venture capital that venture capital organization is the key organ in the venture capital system, t is the joint between capital source and capital conduction and the direct participant and operator, also it is the part suffering risk and sharing the profit, it makes a great role in the progress of venture capital. Secondly, the foreign investor aimed to get essential profit in venture capital. After a period, any venture capital will quit andreclaim investment to realize the profit, then finish the venture capital cycle and get started a new round. So as a high-risk and high-paid activity the venture capital needs a secure quitting mechanism, the complete quitting system becomes the key point for realizing the investment pay-back.