Combination Of Capital Leverage To Talk About The Development Of The Venture Capital Industry

In this article, mainly discussed are my personal opinions on venture investment, especially observed.From the point of view of a venture investor, the discussion embodies five parts, respectively dealing with the venture investment's conditions, principles, and management strategies, as well as the government supporting.Chapter One, is focused on introduction to a new concept -----"Capital Leverage Principle", meant to explain the following phenomenon: when emerging with large capital, if the income rate of the total capital experience or is predicted to experience some small changes (generally positive ones),the income of small capital would undergo a much bigger change. If the small capital plays a vital function, it will win an extra income than the income he would get by original percentage before emerging. Being much larger than the small capital, the large capital will and also would rather give a small portion of income to the small one. So, the small capital 's income rate is a little bigger than the total income rate. The income rate is determined by bargain between the individual holders of small and large capital.In the Second Chapter, a brief introduction to the venture capital's definition, features and operation is made. And the venture investment itself, as a term, is defined in the light of differing from ordinary ones but better reflecting its nature: the Capital Leverage Principle. The Third Chapter is about the function of the venture capital in China.The Fourth Chapter deals with the roles government plays in the development of venture investment. In the last part, further discussion is made about the environment and strategy of china's venture investment institutions. As a result, some practical suggestions are put forward as far as funding resources, institutional types, investment activities and withdraws are concerned. Finally, this paper tends to say that it is not the fund for venture investment is in lack, rather, it is the channels for the investment are not adequately workable.