Development Of Venture Investment Research

The venture capital prospered in western counties after the World War Ⅱand soon boomed all over the world. Now it has become a novel financial industry. Today, companied with the development of high-tech industries, the venture capital also becomes a kind of important motivation to high-tech and economic development in developed countries, which mostly owes to its fresh operating mode and effective innovating achievement. In Asia, some countries and districts are also taking great efforts to establish and improve their own venture development in order to help their economy to progress. China also had begun to explore the way to utilize the venture capital to develop its high-tech industries in the 1980's, however, owing to some reasons, the process is very slow. With the arrival of the era of knowledge economy and technology has become the main booster of economy, more and more people have realized that it is very urgent to complete our own venture capital. Its key question is, what kind of operation mechanism China should to choose when it is planning to establish venture capital so as to fully bring its effectiveness into play, and such question is the aim of this paper.This paper consists of three parts as follows:The first part is about the general statement of venture capital. In this part, the author firstly gives a brief explanation of its basic meanings, origin and the history, status quo and trend of venture capital in foreign countries and briefly analyses its main characteristics. Then, the author specifies the uniqueness of the operation system of venture capital that is totally different from the traditional direct and indirect financing ways such as loan, state financial appropriating funds, financing practices of investment bank and securities investment funds. Based on this, the author demonstrates that only the venture investment can assume the task to integrate capital, management and technology.The second part analyses the status quo and the problems of Chinese venture capital. From the review of its history, the author finds that there are two different types of Chinese venture capital. One, without orderly operation mechanism, has been into difficulties, but the other that operates with economic mechanism, among which the high-tech enterprises particularly utilize the international venture capital, has been developed rapidly. With such comparison, the author concludes the main reasons that leading to the slowness of Chinese venture capital such as the single source and the small quantities of capital; the deviation of investors; the scarcity of human resources and the imperfect outside operation conditions, etc. At the end of this part, the author points out, as facing the severe challenges of international economy and technological competition, China must take great efforts to develop the venture capital.The third part offers the proposals for how to develop Chinese venture capital, which is the core content of this paper. Under the principles of innovation and according to Chinese practices, the author gives proposals as follows:First, establishing venture capital funds to support the high-tech enterprises which are in the initial period.Secondly, establishing the multi-level capital system including second-tier market, over-the-counter market on the basis of main-tier market for venture investment as soon as possible and encouraging the merging among enterprises so as to provide a way for systematic withdrawal, such is the key to the system of venture capital.Thirdly, establishing the cultivating and stimulus mechanism for human resources.Fourthly, the government should play an important role in venture capital field and should take the development of venture capital as the core of the investment and financing institutional reforms of high-tech industries. The proposals include: (1) setting up the assistant institution for venture capital; (2) carrying out taxation reforms and taking favorable policies to venture capital; (3) establishing credit assurance...