Analysis Of The Exit Mechanism For Venture Capital

With China's rapid economic growth, China has become Asia's most active venture capital markets. Venture capital is an important tool to solve the financing problem of small and medium enterprises, and it is one important means of optimizing the allocation of resources. Financing, investment and exit are three essential phases in the operation of venture capital investment, the problem of any phase affect the normal operation of venture capital. Venture capital aims to reap high profits, so exit of form, timing is crucial in its operation, a reasonable exit strategy can ensure the high profit and good liquidity.The paper shows the best exit strategies in different circumstances by comparing exit modes and exit times, and demonstrates the real effectiveness of the strategies through a case. This article includes five parts:the first chapter, described the background and significance of topics, and related theories and research findings at home and abroad to conduct a simple review; the second chapter introduces the general theory of venture capital, including venture capital concept, development, operation mode etc, to lay the foundation for further research; the third chapter discusses systematically and comprehensively on the venture capital exit mechanism, mainly discusses the advantages and disadvantages of every exit way of venture capital, compares the differences of exit mechanism between US and China, and makes an in-depth research on the relevant markets and systems, conduct a detailed analysis of the problems of venture capital in China. Chapter four analyzes the problems in the actual case LiHe Venture capital achieved an exit mode of venture capital companies; The case about www.tudou.com proposed it is wise to exit through mergers and acquisitions. Finally, the conclusion discussed venture capital exit problems and strategies, giving recommendations on the development and improvement of mechanism of venture capital exit, hoping to help the actual operation of venture capital.