Questions On Guiding The Private Capital From Zhejiang And Jiangshu Areas To Be Venture Capital

In foreign activities of venture capital, folk capital has become the main source of venture capital, such as American pension fund which has been the largest part of venture capital recent years. In other hand, with the emergence and augment of folk angel investors, angel investment has got a prosper development, reaching to a relatively large scale. It not only make the source of venture capital rich, promoting the development of venture capital, but also supplies a good way of investment for private capital. In China, private capital has formed to be a big scale, which shows an increasing tendency, but mainly exits in saving status. Therefore, how to instruct certain amount of private capital into capital venture industry will relieve, even solve currently high saving rate as a actual problem, which can also inject fresh vigor into our developing venture capital industry. In this process, it can foster a group of venture capitalist which is important for our venture capital industry.According to this point mentioned above, This paper explores how to guide private capital into the domain of venture capital. Because of the huge differences in the regional distribution, owner conditions and the environment they face for our private capital, we select the private capital from Zhejiang and Jiangshu province as our observing object, which we mainly consider the private capital from Wenzhou especially. We study diversified questions when making private capital as venture capital, including the feasibility, difficulties, choice of entering methods and function that government should exert etc. To build working mechanism and system through solving these problems.This paper is composed of six chapters. We firstly illustrate the relative definition of venture capital industry and venture capital, compare the composition of international venture capital and analyse actuality of venture capital industry and main structure of venture capital in China. In second chapter, we show the relationship between venture capital, folk capital and private capital, and emphasis the development of Zhejiang and Jiangshu Proving private capital, and that of Wenzhou private capital. The third chapter analyses the feasibility of letting Wenzhou private capital entering the domain of venture capital industry from perspectives of government, law and its own characteristics. The fourth chapter do more detailed analysis on the basis of chapter three, including facing problems, method selection etc. Chapter five mainly discusses function that government should exert on promoting private capital to entering into venture capital industry, including conducting them actively, making relative laws etc. The final chapter gives a summary and expectationon the basis of analysis above.