Researching On China's Venture Capital Development Mode

In the world of knowledge time today, science and technology has increasingly become the economy generator and decisive factor for a country's competitive power. Promotion of hi-tech innovation has been listed into China's basic national policy. Venture capital plays an important role in cultivating hi-tech innovation and industrialization. It is said that without venture capital, without hi-tech industrialization and modern knowledge economy. Venture capital is significant to our country's rapid and sustainable economic development.Ever since the introduction of venture capital into our country in the mid of 1980's, we have made certain progress in this regard. With many venture capital firms come into being, they succeed in nurturing a batch of hi-tech companies, which played a positive role in facilitating hi-tech industrialization and economic structure modification in our country. However, compared with developed countries, we still have long way to go. Our venture capital firms are still small in size and low efficient in performance. The fundamental reason lies in shortages in our development mode: narrow finance access, incompetent management operation and lack of fund withdrawal channel. In addition, recent years a plenty of foreign venture capital poured into China to seek their fortune, having brought great pressure and challenges to us. How to improve and optimize our venture capital investment mode has been an urgent task we faced.Starting from the basic principle of venture capital investment performance, this paper studies the framework of venture capital system and related factors in an all around manner. Making this backbone of this paper, this thesis analyzes the problems existed in China's venture capital industry. Based on researching on developed countries and regions' experiences as well as China's business environment, this thesis brings forward suggestions for China's venture capital development mode: to adopt fund-management company as the major organizational form at present, and gradually advocate limited cooperation system; to construct public based multiple finance access system by the help of government; to establish a multi-fund-withdrawal mechanism.