The Research On The Exit Mechanism Of Chinese Venture Capital

Venture Capital (VC) plays an important role in promoting the industrialization of high-tech in the knowledge economy era. In order to accelerate the transformation of high-tech to real productivity, developing the high-tech industry, the government is bending itself to develop the VC in China. However, because the immaturity of the financial market and the capital market, especially the absence of exit mechanism, the development of VC in China has been restarted seriously.The importance of venture capital exit mechanism has been arose the attention of the foreigner experts, but little attention pay on the microcosmic part of VC's exit mechanism. Based on the published theories, the author deeply analyzed the macroscopical and microcosmic factors of VC's exit mechanism in quality, and established the exit channel choosing model. At the same time we gave the policy suggestion.There were six sections in this thesis: Section 1 was about the background, the purpose, the significance and the frame of this thesis. An overview of VC and VC's exit mechanism was given in section 2.Firstly, this thesis gave a definition of VC and its characteristics. Secondly, we analyzed the importance of VC's exit mechanism.At last, we analyzed the main channel of VC exit, such as IPO, Sale of Enterprises, and Write-off , and pointed out the advantages and disadvantages of them. In section 3, We compaired the exit mechanism in America, German and the district of Taiwan, in order to prompt the development of Chinese VC's exit mechanism from learning from the experience of them. In section 4, we analyzed the exit mechanism of VC in China from macroscopical and microcosmic factors.Based on the analysis of Chart 4, we analyzed the main channel which the VC invest insitutions could choose in China, and established the model of exit channels to appraise the feasibility of the main exit channels in Section 5. In section 6, some reasonable suggestions and countermeasures were also proposed to strengthen Chinese exit mechanism of VC.