A Study On Venture Investment Returns And Its Factors

"A few points of Accelerating the Development of Venture Capital in China" in 1998 set off a wave of China's venture capital activities. Between 1998 and 2001, venture capital organizations accumulated from 53 to 246, and the total amount of investment under control increased from 5.1 billion Yuan to 40.5 billion Yuan. In 2002, the world economy slowed down and international venture capital ebbed, so China's Venture Capital entered a period of adjustment. During the period, although the reduction of local venture capital activities, China's rapid economic development attracted more foreign investors and venture capital in China glowed gradually. In 2006, Venture Capital in China has entered a brand-new phase. According to related statistics, in 2006,2007and 2008, the total amount of venture investment were 144,398and 339 million, and the number of investment projects were 371,741and 506 respectively. It is obvious that China's venture capital business in 2007 like the stock market achieved breakthrough growth, while in the second half of 2008, full-blown financial crisis made venture investment more cautious. On October 30th,2009, after ten years of difficult experiences, China's Growth Enterprise Market rised in the Shenzhen Stock Exchange, in contrast with the not optimistic situation. Among the first group of 28 companies listed on the GEM,23 venture capital firms had gained support of Venture Capital. The born of GEM in China not only improves the levels of China's capital market, but also brings all kinds of social capital for domestic small and medium enterprises to innovate.It also eases the current financing problems of SMEs,helps to adjust China's industrial structure and plays an positive role in building an innovative country.20 years of ups and downs causes a qualitative leap in China's venture capital. Foreign and domestic scholars have done much research on China's Venture Capital, but most of them are based on qualitative research, less on quantitative research. Especially for factors affecting venture investment returns, there is a lack of systematic theoretical and empirical research. This paper combines specification analysis and empirical analysis, qualitative analysis and quantitative analysis, as well as static analysis and dynamic analysis, in order to study venture investment returns and the factors, making up of scholar's deficiencies in this regard. In addition, the paper first set GEM Listing domestic venture capital companies and organizations as examples to do empirical research, hoping to get some useful conclusions and policy recommendations, which could bring some enlightenment for the future development of China's GEM.