The Government Supports The Venture Capital Financial Model And Risk Leverage "effect Study

Progress of technology has become the fundamental driver for the economic growth in the era of new economy and it can't be achieved without financial support.Venture capital investing,arranged as a new monetary system,plays a critical role in promoting technological changes and is widly accepted as "the engine of economic growth".Modern venture capital started in the US in the 1940s and gained a great success after that.Thousands of the unknown small firms developed into world-famous multinational companies with the help of venture capital investment.Later,venture capital was adopted as a new financial mode in other countries and areas.Compared to the direct support method taken by Europe and Japan,SBICs program supported by US government is more applicable for the venture capital industry.Venture capital investing in China has a history of more than 20 years and achieves success in incubating and promoting hi-tech startups.But due to the inappriate design of venture capital market system,many problems,such as reluctance to invest projects in the seed stage,lack of financial channels, immature investments appeared and did harm to the healthy development of venture capital market and effects of China's "independent innovation" strategy.Based on the facts,this thesis starts from the "venture leverage" of SBIC program implemented by the SBA,analyzes and deduct its financial model, including the design of leverage,choice of financial instruments,sensitivity analysis and so on,tries to find the best investment mode that promotes cooperative investments between government and private sectors and maximizes returns.Unlike most research papers done before,this thesis expounds venture capital management modes with the participation of government,cost-profit analysis and system design,uses multiple research methods such as normative analysis,comparative analysis and empirical analysis.At last,we proposed related conclusions and suggestions based on the results of model and combination of effective modes overseas and China's status.The suggestions include:1.promote policy introduced fund of venture capital investment;2.choose appropriate fund management mode according to the features of different regions;3.attract more potential financial resources; 4.set up incentive mechanism of venture capital funds in line with China's situation.