The System Of Private Capital Into The Venture Capital Supply Study

By introducing the Theory of the New Institution Economics, the thesis establishs a framework of institution demand and supply. Firstly, the thesis analyses the institution demand of folk capital transforming into venture capital. Folk capital is the most important source of venture capital. Now the supply of folk capital is in a great shortage in our country as a result of a shortage of institution. As the maturation of principal participant in the market, hi-tech company and folk capital realize that they can get more profit through institution innovation. They have a strong demand for institution.Secondly, the thesis analyses the institution supply of folk capital transforming into venture capital. Government's behavior influences on venture capital. Althongh government has take some measures, there are obstacles and difficulties of folk capital transforming into venture capital. In present, the demand and supply of institution is not balanced .In the situation of institution imbalance, in order to satisfy the institution demand that will promote and regulate folk capital into hi-tech company, government should supply a series of institutions for venture capital forwardly and duly.Thirdly the thesis brings a system of forward institutions supply that promote the investment of folk capital. Government should create a good macro economy environment by supplying formal institution includes stimulative policy, institution innovation and high and fluidity capital market system. Also it is necessary to provide informal institution .Then the thesis analyses the content and approach of informal institution.