| The revolution of technology is the main fact of economic development in modern times. The realization of technological revolution depends on the support of financial system. As a new financial system, venture investment acts an important player in promoting technological revolution. The modern venture investment comes into being and success in the 1940's of America. Since the year of 1990, venture investment has made a big progress in China. From the year of 1997 to 2000, the annual venture capital volume increased over 70 every year. Affected by Chinese macroeconomic adjustment, fast developmental momentum of China's venture investment was slowing down into the year of 2000. What we found in the research was the fact that Chinese venture investment focused in the economically developed areas, such as Shanghai, Beijing and Shenzhen. It was from the data that the capital volume in Shanghai was less than that in Beijing from the beginning development of venture investment in 1990's. Even by the end of 2000, the venture investment industry in Beijing was much more flourishing than in Shanghai. The venture investment industry in Shanghai, however, is developing rapidly in recent years. It has become the most prosperous area in the development of venture investment in China. The paper tries to answer the questions that what are the main facts in the development of Shanghai venture investment and what is the advantage of attracting venture capital in Shanghai.The research summarized many venture investment development report and carried out several survey on the basis of Shanghai's situation. On the basis of adequate information and data, the researcher designed value model of developmental level of venture investment industry in deferent areas. At the end of paper, the researcher tabled a proposal to governments and investors on the basis of the model. |
