Study On The Private Capital Entering Venture Capital In China

At present, there exists a serious dislocation of supply and demand in China's private capital, one hand, because of high-tech industries lack of capital so it get in bottleneck stage, the other hand, there is a large number of Chinese private capital idle, the state's investment primarily by government investment, and government investment as the mainstay, long-term point of view, is not very good for a country's economic development, which is already been proved by the more developed countries . Both the United States, Canada, Japan or Korea, which the government is always risk investment guide, the government funding has always been private capital, "navigator." The government of any country can not provide their own inability to venture capital funds market demand, Practice has proved that private capital is the main risk investment. But as we all know, our economy has had its uniqueness, therefore, in our country at this stage whether we should encourage private capital to enter the field of venture capital, this paper focuses on issues. Private capital we need to start changing attitudes, strengthening laws and regulations to gradually open the investment fields, wide width investment channels, the implementation of a fair and reasonable tax policy, the establishment of a social service system, improve the management of government, adopt various incentives for private capital to enter risk funding spheres to create a fair and competitive social environment.This paper introduced the first major chapter in this paper on the study methodology and research on the significance also introduced some basic concepts of this writing done to pave the way. Chapter II on international sources of venture capital done a situation analysis, found by contrast, China mainly come from government investments, and the world capital market more mature country risk investment comes mainly from private capital. Chapter III of risk the return on investment and risk of doing the analysis, in this author provides a method to risk the return on investment and risk quantification, provide investors with a reference. Chapter IV of private capital into the venture investment barriers, the main obstacles to risk investment in internal systems obstacles, the relative lack of laws and regulations, tax barriers, enterprise risk resort Princess hangers and exit channels are sluggish and other reasons. Chapter V was made private capital participation in the venture capital market abroad experience and enlightenment. A three-pronged approach is the main exposition. Summing up the first foreign venture capital and private capital relations experience, and then to give the system a few suggestions, such as private capital investment should be the main risk, improve laws and regulations, to give tax policies, and improve SME credit guarantee system, and other government enforcement arrangements and the creation of an effective system of group system, the establishment of a venture capital fund and the establishment of private small and medium-sized banks purely voluntary system arrangement, the government will put the final will be in the area of investment capital repayments is the correct path. Writing the last chapter of private capital to participate in China's capital market. Strategies mainly include the following six aspects: the establishment of a private capital as the main body of venture capital investment system, increase the intensity of innovative financial instruments, the effective protection of civil rights and interests of owners of capital and adjust the taxation policies to encourage non-governmental capital to enter the venture capital market, innovative ways to raise funds, the establishment of a limited partnership based venture capital fund, with perfect tact.