Study Of The Capital Venture Exit

Venture capital has developed rapidly in China. Since growth enterprise board(GEM) launched in 2009, venture capitalists have turned their attention to the GEM. There are more and more Venture capitalists choosing to exit their investment by GEM. The return rate on exit by GEM is very impressive. The GEM has launched for a short time. So my study on the performance of venture capital exit based on GEM data is relatively new.My paper first reviews the empirical research on venture capital exit at home and abroad, then analyzes the difference between the method by which venture capital exits. I. also give a comparison of domestic and foreign venture capital exit market. In the third chapter the performance evaluation of venture capital exit has been studied. In the last chapter I select the equity background of venture capital company, the initial investment, the investment cycle, the registered capital, length of the investment, the location of venture capital and other factors, based on the data of companies listed on GEM, using correlation and regression to analyse the factors affecting the performance of the venture capital exit.The data using in this model are selected from issued periodic reports of the companies listed in GEM, involving 32 GEM-listed companies and 38 venture capital organizations, focusing on venture capital exit by GEM. The empirical results can accurately reflect the factors that affect domestic venture capital exit performance.The empirical results show that Venture Capital exit by GEM has won great total return. Among the selected seven explanatory variables, the initial investment is significantly negatively related to the total return. The investment cycle and the total return have significant positive correlation. Other explanatory variables and the total return have no significant correlation. Finally, I give some suggestions on improving the performance of venture capital exit.