Research On China Venture Capital's Exit Mechanism

In the past more than half a century,Venture Capital(VC) has greatly promoted the economic development and the upgrading of the industrial structure in American-European countries.Practice had proved that VC played a great role in the industrialization of scientific and technological achievements,the development of high-tech industry and the industrial restructuring.Although the Chinese government attached great importance to venture investment from the introduction since the mid-1980s,the VC industry has been slowly to develop and play its rightful roles.There are many reasons,but one of the most important reasons is lacking the proper VC exit mechanism in China.The process of exit of VC is not only the process in which the venture capitalist can make big returns,but also provide opportunity of venture firms' further growing independently.At the some time, perfect exit mechanism insures the Positive cycle of VC.First,this dissertation gives the definition of venture capital in China market and the exit mechanism in general and introduces the reason of VC's exit and the important function of exit mechanism in the whole investment.Second,Several common exit ways of venture capital(such as IPO,Shares Trade and Sale,Liquidity etc.) are listed and analyzed respectively.This part also compares two main ways of exit with economic factors,which comes to conclusion that each way of exit has advantages,then founds a model to explain how venture investors choose the proper exit way.Third,it analyses the status quo of exit ways and interrelated system in quantitative analysis way and qualitative analysis way,and point out the obstacles in every main exit way in China.At the end,the last chapter puts forward some advices to solve the problems of our exit mechanism,such as the construction and operation of second board market,foundation and perfection of the over-the-counter market,constituting sound path of liquidity,perfecting interrelated laws and rules and cultivating professional financial agent etc.to promote VC' development.