Study On Electronic Commerce Enterprises Financing Strategy Of Venture Capital

The Electronic Business enterprise, as an innovation internet enterprise, is with characteristics of high risk and high expected return. It's difficult for these enterprises to access to credit support from banks, which focus on the current revenue of enterprises. Therefore, Electronic Business develops with venture capital from the beginning up till now both inside and outside China.In the early development of Electronic Business, venture capital gain return by listing the enterprise and selling the shares on the stock market. They don't care the development and the profit of the enterprise. With the internet bubble burst, venture capital starts to pay more attention on the development of the enterprise, and to be stricter with the enterprise. Venture capital set evaluative criteria for the Electronic Business enterprise. The system platform and a certain amount of users are required. In this situation, the main financial target is to access to venture capital through an efficient way.The article starts from the theory of Electronic Business and venture capital, and then analyses the characteristics, development and financial problems for the Electronic Business enterprises. With the different stage of the development, the financing of Electronic Business enterprises has its different capital demand. The article focus on how to choose the suitable venture capital investor by their investment characteristics, preferences, and investment way. For the unique difference of Electronic Business enterprises, some strategy has been discussed, as management of a series risk, business model, core competitiveness, implementing steps and exit mode.In conclusion, to attract venture capital electronic business enterprises would better firstly complete the system development and make clear the operation objectives, and generate management and exit strategies to benefit both sides. In the end, some suggestions have been made for the enterprises.