A Research On The Withdrawing Of China Venture Capital Investment

Reviewing the history of venture capital investment in the U.S, and countries in Europe and South-east Asia, I summarize the four reasons leading to the emergence and development of venture capital investment in these countries. Technical innovation and the change of economic structure are the prerequisite of the4 emergence and development of venture capital investment industry. Matured shareholding system and developed finance market are the cornerstones of the smooth development of venture capital investment. The participation and support of government is the external motor of the development of venture capital investment. Finally, the completed law system is the fundamental guarantee of venture capital investment.There are several apparent trends in the venture capital investment in the world. The first is the diversified venture capital resource, the second is that investment takes the form of security, the third is the legalization of the means of motivating venture capital investment, and the fourth is the internationalization of venture capital investment.The operation procedure of venture capital investment consists of three stages: financing, investment, and withdrawing. The formation of venture capital, e.g., financing, is the major problem of venture capital investment. It's the foremost difficult stage foremost difficult stage for venture capital investment firms. Secondly, the utilization oft venture capital, i.e., investment stage, is the most important stage. It creates the two combinations determining the success of venture capital investment: the combination of venture capital and value added opportunities and combination of venture capitalists and venture entrepreneurs. Further more, the withdrawing of capital is the finalizing stage of venture capital. Withdrawing the invested capital and the value added profit is the purpose stage of venture capital, also the key stage of properly operated venture capital.Developing venture capital investment has very important practical implications to our socialism market economy. Developing venture capital investment is the important means to promote the commercialization of high technology, and is also the natural choice of the strategy of "making our country strong through developing science and education". It's beneficial to optimize the combination of resources, improve the efficiency of capital utilization, and enrich the investment styles. Finally, it can help high-tech industry clarify property right, establish modern enterprise system and optimize industrial structure.This thesis consists of eight chapters. Chapter one is the brief introduction to venture capital investment. Beginning with the definition of venture capital, this chapter introduces the systematic components, the basic features, and several typical forms of venture capital investment, and analyzes he operation procedure, inherent mechanism and operation environment of venture capital investments.