Economy Analysis On Public Policy Of American Venture Capital

As the most developed country in venture capital, America total venture capitalvolume has surpassed 100 billion in recent years. Of course, prosper in venture capitalshould thank to the prosper of America economic and tradition in initiation, but themore important is uphold of America public policy. Therefore the aim of this paper is tostudy the influence of public policy imposed on American venture capital. Americaventure capital was found in 1946, but its scale is small until 1978. In 1958, Americangovernment began to uphold the development of venture capital, and enacted SBICA.But venture capital developed very slowly for the stagnation of the whole economic.America venture capital did not enter into a new era until the emerging of "prudentman". The whole 1980s, venture capital justified high development. Although thestagnation at the beginning of 1990s, it developed quickly into its original situation. In2000, venture capital came back to stagnation for collapsing of NASDAO, but till to2003 it keeps a rational development.According to above analysis, public policy of America venture capital can bedivided into 3 stages. The first is early and stagnation stage; second stage is accelerateand orderly developing; third stage is stagnation and rational development, we lists outpublic policies in every stage according to different historic stage and picks out somepublic policies that more important comparative to others in same stage to carefullyanalysis viewed from the angle of economics. We predict the influence of publicpolicies waiting for coming imposed on America venture capital. In last part of thispaper, some suggestion of pubic polices in venture capital in china is taken based onexperience of America.