Research On Folk Capital Entering The Venture Capital Field

In the knowledge and economy era, innovation is the core competitive power of country and enterprise. And venture capital is a way of non-traditional financing, it unifies the fund, technology, management and initiative spirit, supports innovative activity and development of new high-tech industry, promotes flourishing and prosperous of whole economy.The international experience indicated the venture capital industry is indispensable engine and the auxiliary booster that promotes the high and new technology industrial production. It has the important strategy and practical significance to transforms the economical growth way, realizes the industrial structure adjustment, reasonably disposes the resources and promotes our country economy international competitive power and so on aspect. The Chinese venture capital industry should pay attention to nurture the entity of venture capital, once the folk capital was ushered into the venture investment utterly and effectively, the market disposition would be effect in marshalling kinds of resources, the management efficiency of venture capital would be raised, and the mechanism of venture capital would operate normally.The paper proved further the importance the folk capital enters the venture capital domain through research deposit-investment transformation theory. The paper compared and analyzed the various countries characteristic of venture capital fund in portfolio investment theory foundation, elaborated current situation of venture capital fund and the existence problem which lack of fund in our country.The main reason cause lack of venture capital funds lies in the single fund structure. The fund channel of our country should pluralism, include saving deposit, insurance fund, National Social Security Fund, enterprises deposit, etc. The funds have very heavy potentiality, enter venture capital field totally feasible. This text also analyzed other obstacles that influence fund entering. And analyze possibility that folk capital entering venture capital with relevant theory like economics, the investment etc.Through the above analysis, we find government and risk enterprise should go on a series of reforms if they want to improve the situation. At the same time the government should create a good macro economy environment for venture capital, construct multi-level, high and fluiditycapital market system, and strengthen the tax system reform. Enterprises should be devoted to the reforms of management ability and internal system. We could make use of the way mentioned-above to lift the profit of venture investment, furthermore, provide a more broad platform for the folk capital enter the domain of venture capital.