The Research On SME Venture Capital Exit Mechanism

As a collection of high risk and high yield, capital appreciation of venture capital increases by a continuous capital circulation of "Investing-Recycling-Reinvesting". Venture capital mainly depend on a high cyclical liquidity, the exit mechanism of venture capital ensures a mobility of capital and precipitates a capital appreciation which provide more venture capital, therefore an effective exit mechanism of venture capital brings a virtuous cycle, and is also a core of venture capital. The research of this contributes to promote venture capital's circulation rate and make more capital operational effectiveness.First, this thesis analyzes and summarizes the current situation and the obstruction factors about the development of Chinese venture capital. With China's phenomenal economic growth and strong policy, China's venture capital was keeping a whole developing state for increasing in 2007, but it still appeared some obstruction factors, for instance, localized and marginalized development, limited financing channel, regional restriction, and disfigured organizational forms and so on. According to the financing feature in the life cycle of enterprises - the various stages of growth and with the changes of constraint conditions such as information and LNASSET, enterprises' financing channel and financing structure will be changed. The earlier growth step enterprises are, the stronger external financings are, and the narrower channel is. And the direction of venture capital of many countries is in favor of the earlier developing enterprises, it's said an establishment of the exit mechanism had greatly promoted the development of venture capital. On the basis of Chinese fundamental realities and practices, the thesis outlines the future direction of establishment of the exit mechanism which comes down to the exit channel, the second board market, establishment of the environmental mechanism, and the improvement of talents developments and operation governance mechanism, it quickens the development of venture capital, and sets a goal which transfers of scientific and technological achievements and promotes Chinese economic competence. And it analyzes the exit decision from exit manner, exit time and exit degree.This thesis mainly analyzes on the operation mechanism of venture capital in China's capital markets and market building is favorable for the exit of venture capital, therefore it's explored in capital market systems. Through analyzing theories und praxis of venture capital exit mechanism, associated mechanism and interactive mechanism between capital market and venture capital, it shows an operation mechanism of venture capital with Chinese characteristics and illustrates the rule of market of capital operation in Chinese venture capital for designing the structure of venture capital exit mechanism.