An Economic Explanation Of The Development Of Venture Capital And Its Policy Environment Research

Venture capital is a strange and familiar term in China's economic development, saying that strange, because the term has been raised venture capital up to now only been gone through 10 years, such a short time for a new industry from the beginning developed to a mature growth and then to the well-known is really not enough; saying that familiar, because with the high-tech and new energy sectors continue to be taken seriously, the rise of venture capital as a necessary condition and its rapid pace of development, venture capital industry in our country's economic development has played a pivotal role.China's venture capital industry for the development research started in the 20th century, the economic growth mode transformation, as well as putting forward reform and opening up, the entire country began to pay attention paid to China's economic development in the technology industry has brought a great contribution, as a high-tech industry necessary conditions for development-the venture capital industry started to receive constant attention. The financial sector, as well as Western countries began to follow the U.S. venture capital industry, success stories, hope that one day China will be born "in the Nasdaq miracle."Recently, the secondary market for the formal operation of the business section have been included in the agenda of China's securities, accompanied by what we know through various channels to channels created by the GEM worth hundreds of millions of entrepreneurs, financier as well as a large number of artists such as GEM, intimately connected with the people.Although the venture capital industry in many countries occupies an important position, but the economic circles of the venture capital industry in research and are not in much depth, one of the most fundamental problem is why venture capital industry exist? Even without the venture capital firm, there are still commercial banks, investment banks, private investors, the stock market, to the newly-established businesses can provide the capital. And, in fact, many newly-established businesses from the bank or get private investment capital, there are many newly-established businesses to raise capital from the stock market, then why the venture capital industry exist?This article is from the perspective of economics to analyze the reason why venture capital in this industry from there to the continuous development is in line with the development pattern of the overall economic development, but also explains the reason for the existence of the entire capital market is an objective necessity, to formulate the following research content:the first chapter on the article explains the research background, practical significance, for some simple introduction to venture capital as well as from the operating mechanism of risk investment, including a unique high-risk and high-yield co-exist, the exit mechanism for their unique and special to analyze the dual principal-agent Venture Capital and other types of investment compared to those of its unique characteristics.ChapterⅡof the major review articles on economic growth theory, the theory of financial innovation and venture capital, contract theory, reference to these documents reviewed and summarized is in order to start the next chapter of the venture capital industry to explain the economics of laying the theoretical foundation for discussion.ChapterⅢof this article as a core part of the article, according to the previous chapter on the literature review and the characteristics of venture capital to set out their own precisely. Because of change in the pattern of economic growth has become an important factor in making scientific and technological progress, while the scientific and technological progress to support the financial sector needs innovation, venture capital is one of the most effective technologies content of most models of financial innovation to support the advancement of technology as well as economic development. Finally, the introduction of the venture capital contract theory, Limited Partnership's application to the entire venture capital industry in the most effective protection.ChapterⅣof the text describes the history of U.S. venture investment and development as well as the policy environment include effects on support policies to have begun in venture capital, investment and tax policies have lifted risk investment growth, the new pattern of economic growth policies, raise the risk of investment boom, venture capital and economic bubble that the last of China's venture capital industry in the policy environment for economic development analysis and policy recommendations.