Research On The Agency Relationship Of Venture Capital And The System Innovation Of Private SMSs In China

Venture capital in America, Japan and Europe and other developed countries and regions have been fully developed. Theoretical also had extensive and in-depth study. In recent years, many scholars engaged in a great deal of venture capital mechanism .In this paper, based on research by scholars at home and abroad, the analysis focus on the relationships of venture capital.Firstly, the basic organizational form of venture capital was limited partnership and there was underlying mechanism in it. This paper focused on the exogenous governance mechanism of venture capital. There is the relationship between investors and Venture capitalists and the relationship between venture capitalists and entrepreneurs. The first relationship is the most important one in the dual principal-agent relationships, which has the incentive and restraint mechanisms exist to start businesses for corporate governance.Currently, the private sector has become an important force to promote the rapid development of China's national economy. In china, the private sector accounted for the majority of SMEs, What is worrying is the private SMEs in the development process generally encountered insurmountable bottleneck.Through the analysis of private SMEs deficiencies in the system integration venture capital agency relationship internal mechanism this paper summarizes the role of venture capital on the construction of our corporate governance mechanism of the SMEs and the significance to SMEs. Venture capital Organization-an internal mechanism to prove the system of limited partnership is a balance between the limited partnership system and corporate. Limited partnership in financing, taxation and other aspects of private entrepreneurs dominance conducive to the establishment and development of China's private SMEs. Promote private SMEs with system of limited partnership in China it has a far-reaching influence on the System Innovation.