Study On Venture Capital Business Development Of Cr Investment Holding Group Company

Most of China's state-owned investment companies appeared in late 80s of 20th century, and were the products of China's investment & financing system reform. During the two decades' development, the state-owned investment companies played a positive role in guiding private investment, facilitating industrial structure adjustment and propelling rational composition of state-owned economies. It had a great contribution to the development of social economy. For reflecting the facilitation of state capital incubator, many state-owned investment companies start the Venture Capital business (referred as VC business) and push it into capital market, with some shares held by many high and new tech medium and small companies with high growth rate and strong profitability..The CR Investment Holding Group Co., Ltd (CR Group), as a member of the local state-owned investment companies, is a municipal level state capital operator. It had insufficient capital, imperfect capital structure, and lack of professionals. Besides, it also faced with the large and important state-owned capital management reform and the profound changes in market competition environment. In 2006, the CR Group started the Venture Capital business, with some shared held by some promising medium-sized and small-sized companies. It not only improved its profitability, but also facilitated the development of local medium-sized and small-sized companies and the development of social economy.It takes the CR Group's Venture Capital business as the study object, analyzes the achievements it obtained in recent years; applies the SWOT model to analyze the opportunities, threats, advantages, and disadvantages based on the thinking pattern of locating problems, analyzing problems, and solving problems; based on the existing problems found, we make a comparison with the external and internal factors of Venture Capital companies in other provinces and municipalities to explore the developing strategy for the CR Group's Venture Capital business from the investment, financing, internal management of several aspects.Through this analysis on the CR Group's experience, we make sure the company's direction of development. It can provide a development strategy and a thread for the transformation of local stated-owned investment companies from the traditional basic construction business to the more rational one and for winning advantage in competition. I hope the study can provide some references and experiences for similar type investment companies.