Research On Withdraw Mechanism Of Venture Capital And Relations With Structure Of Capital Market

Domestically, viewing from both the number of venture capital investment and the amount of investment money, overseas venture capital is obviously over the local venture capital. Among the causes, the basic reason is that local venture investment institutions in venture capital withdraw from agencies under a clear disadvantage than overseas venture investment.It can be said that venture capital exit is the most important part of the whole venture capital market. The success of entrepreneurial investment is ultimately depends on the venture capital exit. Without flexible and effective withdrawal mechanism, withdraw link impeded, by the formation of venture capital in the best time to stake realized, it will affect the venture investors, venture capitalists for investment, venture capital and inhibit the further expansion of the scale.In withdrawing part, the international venture capital fund exposure overseas, a more developed capital markets can rely on, they can take a more flexible approach to withdraw. Not only will you be entrepreneurial enterprises investing listing abroad, thereby withdrawing directly, but also can match abroad large enterprises, the implementation of strategic purchase, flexibility in the use of the international capital market advantage to the success of venture capital exit.There is no freedom for domestic venture investment institutions to establish investment institutions abroad, so venture investment institution can not access to international capital markets. While the domestic capital market is not perfect and there is only a single way of venture capital exit, it is very difficult to do local venture capital projects overseas listing directly from the only way the transfer of equity, such as mergers and acquisitions.Foreign countries has studied a lot on the venture capital formation and operation, focusing on venture capital management structure and incentive and restraint mechanisms, venture capital leases, pricing, and venture capital from the proceeds analysis. Analysis on the status quo of venture capital in china, we are still in the study stage of the United States and the European venture capital research. China's market environment, industrial policy, social credit system environment and cultural environment has been clearly distinguished from Europe and the United States and even Hong Kong and Taiwan, a single capital market, withdraw from the channels are sluggish, has seriously hampered the development of entrepreneurial enterprises.The first part outlines the concept, investment process, the core features of venture capital, and based on this, expounded the development of venture investment in China and the significance of the status quo.The second part introduces the concept of the capital market, and then detail on comparing US and China exchanges in the capital market structure, the level of capital market and capital markets in the international market, the corporate governance structure of listed companies, stock issuing system, the stock market listing requirements , the stock market regulatory systems, focusing on the New York Stock Exchange, NASDAQ Stock Exchange and the China motherboard market, small and medium-sized board market, concluded:1,The United States stock market has more trading varieties , larger scale, stronger circulation-related, vast number of participants has enormous appeal. It increasingly deepen the development, different levels of the market structure to the financing needs of different enterprises, legal sound, information disclosure requirements, listing corporate transparency, income investors get a better comparison. The development of China's stock market because of a relatively short history, but also from a planned economic system to a market economic system transformation product, there are still many gaps compared with the United States stock market.2,The United States stock market investment returns relative stability and less risky, the Chinese stock market is more risky emerging markets.3,The United States listed company shares dispersed, China's listed companies have domination of a single shareholder.4,The United States stock market has multiple levels, the level of China's stock market relatively homogeneous. Different levels of the market corresponding to the different size of enterprises of different financing costs and risks, the stock market can be subdivision through the levels to maximize the supply and demand balance for capital. Different levels of the market service for the different company clients in the United States, forming a sound system of "cascade market" and diversified market structure. China's stock market relatively single, main board A-stock market has the biggest scale, the second-board market smaller, the third-board market is the smallest. The stock market can not meet the funding needs of enterprises of different sizes.Part III focuses on the theoretical analysis of venture capital exit. Different types of entrepreneurial enterprises relative to the different stages of development. For start-up period enterprises, mainly natural capital to provide capital support; For growing period enterprises, mainly venture capital to service capital support; And for maturity period enterprises, industries capital or public capital to ensure its capital pooling. From the above short-term capital division, the later capital can naturally become the successor of the pre-capital, venture capital withdraw from the relay, and as a result withdraw from the venture capital business enterprises throughout the entire development stage.Study on United States, Japan, Hong Kong, Singapore, India and other countries, we can find that venture capital share of the GDP has a relatively high proportion of the capital market are relatively good of the national capital market development state.From the perspective of the capital market, venture capital exit means generally divided into three ways: private capital market exit, open capital market exit and inside entrepreneurial enterprises exit. Private capital market exit and open capital market exit are two main forms of venture capital exit.For the initial phase of enterprises, because of its uncertainty of development, relatively has large risk, during the period of natural investors transmit investment backward, it is mostly the venture capital funds willing to undertake the ability. For growing period enterprises and maturity period enterprises, the development process gradually reduce risk, the equity form by the venture capital investment can realize by acquisition of big companies through private capital market.For the growing and expansion enterprises, the main channel of its withdrawal from the capital market is through the IPO way of open capital market. Entrepreneurial enterprises may choose creative board market or main board market to list under different degrees of development. Through IPO, the shares achieved by the venture capital investors transmit to the public.Internal withdrawal exit channels mainly include two ways: venture enterprise shares redemption and entrepreneurial enterprise bankruptcy and liquidation.Through comparison between China and the United States entrepreneurial enterprises exit channels, through the IPO withdrawal way in the United States has an average of about 50 percent, while China has only 4.76 percent. There are certain similarities between the Chinese stock market situation of underdevelopment and the German bank as the center of the capital market. Compared to the United States, the stock market's underdevelopment, to a certain extent, has hampered the development of the European venture capital.Regress analysis on the NASDAQ composite index and venture capital support for the IPO financing, results showed that the impact of the NASDAQ Composite Index on venture capital available to support enterprises IPO financing is significant, that is, in the open market value of the higher interests of the time, more venture capital to support the rights and interests of enterprises from the open market access to finance, thereby risk capital to withdraw from.Similarly, the Nasdaq composite index is significant to the impact of the amount of risk investment support enterprise takeover and purchase, that is, in the open market value of the higher interests of the time, more venture capital to support the rights and interests of enterprises through open market mergers and acquisitions, risk capital can withdraw through this way. Clearly, public interest market's prosperity influent the withdrawal and development cycle of risk investment to a large extent.The factors affecting capital from venture capitalists also include the experience of the market environment, as well as in venture capital into the venture enterprises such as leases signed.The factors affecting capital withdrawal also include the experience of venture capitalists, the market environment, as well as the leases signed when venture capital into the venture enterprises, etc.Risk investment institutions in the withdrawal stage face the risk of can not withdraw from the ideal price or even can not withdraw, thus affecting the development cycle of the risk investment institutions, which includes internal factors also include external factors.High quality item can choose a one-time withdrawal from the project. For the not very good quality projects, adopt a phased withdrawal than a one-time withdrawal can gain more capital appreciation from the ultimate realization. We designed a model to prove that a phased withdrawal under certain assumptions is superior to a one-time exit strategy.The fourth part made a number of policy recommendations for optimize the capital market structure. In venture capital investments stage, venture capital funds mainly withdraw from two major platforms:the pioneering plate(GEM) and property rights trading market,through entrepreneurial enterprises IPO shares and investment counters realized investment transactions.We must first establish the GEM. GEM is mainly for the growth of entrepreneurial enterprises, to provide equity financing for small and medium enterprises market, as well as providing venture capital exit opportunities. China already has set up GEM objective economic conditions.Shenzhen's GEM is now SME board, the threshold should be lower to accommodatethe need of the vast number of entrepreneurial enterprises. Shenzhen and Hong Kong, based on the geopolitical factor and the historical link of economic and trade exchanges, the Shenzhen GEM system should design under the framework of in cooperation with the Hong Kong GEM market in the beginning. The complementary effect of Shenzhen and Hong Kong GEM markets is conducive to the organic re-integration of the two markets, thus speeding up Hong Kong's financial market restructuring and financial services optimization and cost reduction, form a new pattern of complementary advantages and common development.At the same time we must vigorously develop the equity market. At present, China's property right trading market very difficult, affected our SME financing and equity flows, from the China Venture Capital also serve to support the role.Focus on multi-level capital market system, from the mutual relations among property rights trading market, commissioned shares transfer system and counter trading market, in light of China's national conditions, China's property rights trading unified national market system design in the current circumstances should vigorously improve the functions and tools of commissioned shares transfer system, and ultimate transition to the counter trading market.