Study On Mechanism And Process Of Venture Capital Exit In China

Venture capital is a kind of equity capital which is invested into the venture-backed companiesof high-tech in order to gain super profit. When holding a period of the stock, venturecapitalists will consider the exit of venture capital so as to carry on a new investment plan. Soa perfect exit mechanism of venture capital becomes the key that investment return can be gotsuccessfully. As our high-tech industry progressing, I think the research of Chinese exitmechanism can hope to develop Chinese venture capital investment.The exit mechanism of venture capital involves two respects, the ways of exit and the marketsof exit. The thesis compares the ways of exit, and evaluates the situation of exit mechanism ofventure capital in China. At last it comes to the conclusion that China must use the experiencesof U.S., Germany and Israel for reference to form a maturity exit mechanism by opening up theexiting ways and perfect the environment of exit. The main contents of the thesis are asfollows:The introduction sets forth the background of the thesis and the study intention. Also it sumsup some research findings about the exiting ways, asymmetric information and the GrowthEnterprise Market.The first chapter summarizes the theory of venture capital.The second chapter compares two main ways of exit with economic factors, which comes toconclusion that each way of exit has advantages, then founds a model to explain how ventureinvestors choose the proper exit way. It introduces the exit mechanism in U.S., Germany andIsrael. And it brings forward the viewpoint that the exit of venture capital is affected withfinance system, development of capital market and other factors. Then it analyzes the exitingways in China.The third chapter points out the intractable problems in our current exit system, which isfaultiness in capital market, legal restriction, inefficiency in transaction of property rights andabsence of an efficient service environment and professional.The last chapter puts forward some advices to solve the problems of our exit mechanism, suchas perfecting Chinese Small and Medium Enterprise Board market, developing Chineseproperty right market, making the best use of foreign second board markets. Otherwise, ourgovernment must create a favorable policy circumstance for venture capital to quit.