Study Of The Influence Of GEM Toward The Venture Capital Investment In The High-tech Companies

The medium and small high-tech companies play a strategic role in boosting our country's technologies and creativity and are the enterprise groups with the greatest innovation and growth potential. While the medium and small high-tech companies have got the features of high input, high-risk and periodic in financing, they cannot gain the development fund through the traditional financial channel; therefore, venture capital is the best choice for their financing. Our country's venture investment has made some achievements after the approximately 20 years'development, but still cannot meet the requirement of the medium and small high-tech companies in the demand of fund, management and value added service. In May 2009, the start of the Growth Enterprise Market (GEM) would consequently cause the substantial effect on the investment of venture capital toward them.This article, based on the feature of the medium and small high-tech companies and the venture investment, studies the relationship of mutual merging, and mutual stimulation between venture capital and those companies. It also draws on the successful experience of venture capital investing on these kind of companies in foreign GEM and studies the new phenomenon and new problem of the investment of venture capital toward the medium and small high-tech companies after the debut of GEM from the angle of the function and selected object of our country's GEM and the basis of the state of venture capital investing on those companies in our country before the launch of GEM. And then, this article would compare the data of the two companies which successfully adopted the venture investment after the emergence of GEM, and studies empirically the influence of GEM on the factor like: the mutual aim, assessment of venture investment value and the content and effectiveness of mutual cooperation, etc. Last, it would put forward the suggestion on the source of venture capital, the structure of venture capital, the exit mechanism of venture capital and the cultivation of talents of capital venture.