Study On China's Venture Capital Development

Venture Capital (VC for short), is raised from private capital market by VC handlers. It is devoted to establishing greatest potential enterprise or rebuilding non-public company, providing innovative management service; participate in establishing & development process that invested enterprise at the same time. It is one kind of capital operation to gain capital increment income when the invested enterprise is matured comparatively and quit from the enterprise.The essence of VC is the supporting system to new & high tech industrialization, in other words, it is investment mechanism among scientific research, enterprise & finance organic integration, with a strong supporting function to the development of new & high tech industry; and is considered as an impetus to the development of new & high tech industry.However, VC investment in China is still on preliminary stage, it is not immature in many aspects. In order to accelerate the industrialization of China's high tech industry, perfect investment and financing system of small and medium-sized enterprises, and boost China's capital market and healthy, stable and sustainable development of national economy, this paper conduct a systematical research to VC investment in our country.Firstly, this paper expounds related theory of venture capital; then gives a deep analyze of China's VC data in investment institutions & capital, investment direction & scale, each regional investment activities, withdraw, income and the region of withdraw project, and indicates that the Venture Capital in China in recent years there has some progress, out of the situation in the first two years of adjustment, but still at the preliminary development stage, some problems still exist, such as the total lack of capital, not perfect relevant laws and regulations, funds source structure is irrational, the mechanism of exit is imperfect, the lack of professional personnel and intermediary service organizations and other causes of underdevelopment and imperfect;Finally, combining China's VC development status with actual situation, the paper give policy proposal to develop Chinese VC based on expansion fund source & financing channel, implementing every aspect hortative policy, establishing multi-layer capital market system, cultivating professional institution & use network platform as information service, improving quality of project, and building multimodal transport mechanism of VC & independent innovation, etc.