Research On Venture Capital Mechanism

Since venture capital born in the 1940s, has become booster of high-tech enterprise. Chinese develop venture capital nearly 25 years compared with foreign developed countries remain inadequate. This article analyzed venture capital financing and exiting of venture capital mechanism, the perfect risk investment mechanism will promote the development of China's high-tech industries,the adjustment of economic structure and the upgrading of industrial structure. The main sources of China venture capital are private capital,foreign capital, company with limited partnership system through the way of venture capitalists and venture enterprise set up agreement to realize and safeguard, motherboard market, second-hand market, foreign and Hong Kong second withdrawal of venture capital markets for main channel. The establishment of growth enterprise market in China resolve the problem which middle and small enterprise due to their business conditions and capital scale restrictions they finance ,for venture capital smooth exited providing an effective channel.This article uses empirical analysis and standardize analysis, the combination of theory and practice, analyzed the venture capital mechanism. This paper mainly divided into four parts:Chapter 1 introduces the background, and venture capital mechanism will promote the development of high-tech industry. The domestic and foreign literature introduction and analysis illustrates methods and idea., summed up the disadvantages.Chapter 2 venture capital mechanism analyses introduce the related theory, venture capital mechanism including import mechanism, operating mechanism and withdrawing mechanism. According to the new economic growth theory, discussing the formation and sources of venture capital. Through a case analyzed China venture capital mechanism, using the finance theory analyzed Chinese venture capital mechanism and evolution process, points out the necessity of exiting multi-channel and continuous financing.Chapter 3 combed American venture capital mechanism and characteristics. Sum up china venture capital features, development status and existing problems, and corresponding comparison. Chinese venture capital invest emerging industries, China venture capital investment scale will be more than foreign; property right replacement, secondhand market listing, company owner to transfer operator multi-channel venture capital- exit model, China venture capital mechanism formed gradually ,but venture capital management, external market environment and the laws and regulations are still lack.Chapter 4 the countermeasures of consummates venture capital mechanism, first pointed out the problems existing. Venture capital choice exiting way and exiting channels, the first consideration is the existing cash and encircling money, from which is not standard, less channels. Improving market external environment, establish and perfect the equity transfer laws and regulations, enforce the accountability of market evaluation intermediary organization, to prevent the disclosure of false information, formulate a sound capital transfer income tax applicable rules, promoting healthy development of venture capital in China.Venture capital industry tends to recovery in the world, domestic political stability, and sustained, rapid economic growth, huge market potential , lower labor prices and higher quality, which constantly improve the investment environment, leading to the domestic and foreign investors optimistic ,the development of China domestic venture capital industry entered a new stage. We should follow the trend, and improve the venture capital mechanism of china, make it become a powerful push of the Chinese science and technology industry development.