Empirical Study On Operations Of Venture Capital In China

The venture capital industry has experienced serious problems and glorious ever since it had established in 1940s. It may be said that the turns and twists is rugged in the process of development. In the late of 1980s, the first venture capital firm were established in China while venture capital industry development booming in the global. In the late of 1990s, the number of venture capital firm increased dramatically, the development of venture capital so fast that a series of problem appeared, at the same time, the environment of global economic recession, venture capital industry suffered a disastrous decline, which is not mature , carried on to introspect and adjust with ego. By a actual case of Zhangjiang Ventures Shanghai, this dissertation carry on empirical study on venture capital industry in China. The contents include the evaluate of business plans, contract engagement, divide segment investment, supervise and control of management. This dissertation carries on the theoretical analysis to capital-market model and contracts engagement behavior. The aim of this dissertation is compare the actual case and theoretical analysis, analyzing of the differentiation between actual operation and theories, point out the problem of our country venture capital industry which needs resolve urgently at present, and put forward the correspond way of resolve the problem.Base on consult a great deal of literature and datum, this dissertation summarizes the development of venture capital industry. Include several definitions of venture capital from domestic and international, theories about venture capital, the decision-making model of venture capital, the research of firm manage and operation mechanism, the controversy of concerning problem which the theories field about the second stock markets establish, new trend that appear in venture capital recently.This dissertation illustrates the case about Kingfox Information Technology Ltd. (KIT), analyze the actual case deeply which operate by the venture capital firm recently, then find out commendable place and the shortages from the operation by venture capital firm. Firstly, how to analyze the item that wants gain invests how innovation enterprise acquires investment from the venture capital firm. Secondly, particular contract contents analyze the engagement and compare it with the contract engagement in theoretically. Point out how convertible contract carry out share risk and benefits between venture capital firms and innovation enterprise. Thirdly, compare actual case to theoretical on divide segment investment. Finally, point out reasonable and shortages in venture capital of our country by discuss and evaluate the supervision and control of management.This dissertation carried on the initial theoretical study on the choice behavior of contract engagement in venture capital and capital-market model at present. The analysis of the contract engagement choose behavior among three kinds of contract model which use usually in international at presently, that is: debt contract, common contract and convertible contract, then carry on some theoretical analyze about choice the contract and general chose the common contract when venture capital investmentcase in our country. The theories study on venture capital aim at three kind of capital-market model, that is takes stock market as the center, takes bank or the business enterprise financial groups as the center, takes government as the center. Analyze the problem of capital-market model in our country. Which study from the source of the capital, the conjunction method of contract, human resource, exits, and the cultural of the venture capital.This dissertation makes use of a great deal of chart data illustration through empirical study and compare analytical method, Following the evaluation and inducing the analysis to investment item about KIT.This dissertation put forward how carry on the development strategy in both side between the macroscopic policy and the operation of microcosmic of our country venture capital industry, which through analyze to the actual investment case and the initial theories study, make more valid of venture capital market in our country, promote the development of our country high-tech industry better.Conclusion: When our appeal the government establishment or perfect the macroscopic policies of venture capital, such as venture capital and revenue laws etc. We should strengthen study with the actual operation and prove the level of the operation by venture capital firm, particularly we should carry out the breakthrough which from the common contract to convertible contract.