Research On The Operating Risk And Risk Control Of China Venture Capital Institutions

This paper presents a system and practical measures to control risks in Venture Capital Institutions(VCIs). Although there are lots of studies on risk control problems from the point of investing, people seldom make research on how to control risks faced by VCIs in the course of fund-raising and exiting of investments. In this paper, the writer comprehensively discuss the topic from the viewpoint of a whole venture capital cycle.The structure of this paper is as following:In the first chapter, the writer discuss the concept and characteristics of venture capital, and compares venture capital market with other financial markets. Besides, the writer also discuss the reason why venture capital should be developed in china. In the second chapter, the writer mainly discuss the types of risks and how to control these risks in the period of fund-raising. Two kinds of risks are under consideration, one is the fund-raising risk and the other is the risk results from the asymmetry information between the investor and fund manager. In the third part, the writer proposes several practical measures to control risks in investing period, such as prudent investigation before investing, the decision-making factors and value-added services after investing. In the last part of this paper, the writer discusses the channels through which the venture capital exits and the factors which make influence on the exiting of venture capital. Then the risks in the process of exiting and the measure to control the risk from the points of outside and inside VCIs are discussed.