Study On Applicability Of Limited Partnership Of Venture Capital In China

Venture capital is such an investment mechanism by which venture capital agents invest in enterprises with high technology and high growth, provide management consultation for the enterprises and obtain returns by selling out the shares at the end. Venture capital, which firstly appeared in America, has become the engine of economic development by driving the growth of high-tech enterprises. In the middle of 1980's, venture capital was introduced to our country. In our country venture capital agents mainly use corporate venture capital as their organization form and has lower operation efficiency while limited partnership is the main organizational form in the United States. Therefore, study on the applicability of limited partnership of venture capital in our country is theoretically and practically significant for improving the operation efficiency of venture capital agents and promoting the development of venture capital in our country.The thesis is based on property theory, principle-agent theory and institution change theory and such analysis method as theoretical analysis, comparative analysis and so on. The thesis firstly makes an analysis on current state of venture capital in China and points out the problems of corporate venture capital. Secondly it analyses the relationship between governance mechanism and outer environment of limited partnership and points out that effective governance mechanism of limited partnership depends on perfect outer environment including law, finance, credit, talent, policy and culture, especially the top three conditions. Then the thesis makes a compare of these six environments between Chinese and American. Finally the thesis gets the conclusion that limited partnership is not suitable to Chinese venture capital agents now but it is the trend of organizational form of Chinese venture capital agents. It also gives suggestions on improving the outer environment of Chinese venture capital and on the development road of organizational form of Chinese venture capital agents.