Analysis On The Mechanism Of Venture Capital From The IPO Of Wuxishangde

Acting as a hatch of high-tech corporation, Venture Capital plays an incredible role in one country's development. The American is the strongest country in technology nowadays, has the highest transformation rate of technology into productivity. It arises from the American sound VC implementation mechanism. In American capital market which is featured as market orientated, the high-tech company can finance its capital by its advanced technology, and gain the value-added services in diverse aspects such as corporate finance from its investors, thus commercialize its technology and supply to the market. With the perfect combination of technology and capital, American gradually restructures its industry into higher rank, its products become more and more competitive, and become the major power both in the economy and technology.Our government has been encouraging the independent innovation, pushes up its industry through technology, promotes its industry structure, improves the added-value of our products. To pursue this objective, we have to develop a capital market which tolerates high risk and chases high returns. The start-ups finance its initial capital and obtain external assistance for further development. The investors will gain the enormous profits from the company's prosperity.Venture Capital has its own objective mechanism. It demands a harmonious legal system and culture. Many laws are concerned, such as'Limited Partner Law','Corporate Law','Securities Law','the Regulation of Foreign Exchange','the National Industry Policy of Foreign Investment','Contract Law','International Investment Law','Conflict Law'etc. Its unique sophisticated contract arrangement makes it differently. To utilize this professionally efficient capital implement mode, we have to know its intrinsic attribute and exterior formation.Through a successful VC case----"Wuxi Shangde"IPO on the New York stock-exchange market, this paper analyzes the VC mechanism of our country, provides a feasible financial mode for high-tech corporations, realizes the effective match between capital and technology.