Venture Capital Operation Mechanism And The External Environment

Looking forward to the 21st century, we are entering the age of knowledge economy in ali aspects. The high tech industrialization will be intendency in the age of knowledge economy and key point in the inter- national competitive strength of a country. On account of the fact that the high tech industry is characterized by high concentration of technology, large investment, high risk and good reward, tradition financial system can hardly provide positive surport for the development of the high tech industry. Venture capital has become an important support in capital for the development of high tech industry. The essay introduces proposals and roles of venture capital, and di- cusses the unique demand of the capital in high tech industry. It also reveals the key points of success in venture capital, which is coalescence of the capital, the technolony, the knowledge and the human capital. It analyses the operating system in the venture capital. The U. S. A, as the origin of the venture capital, is the most developed country in venture capital. Its successful experience has been set as an example throughout the world. The essay analyses the development process, the main charac- teristics and outside environment of the venture capital in the U. S. A. At the last part of the essay, the authour talks about several proposals on the venture capital system in our courtiy and advises our countrys policy and method of developing the venture capital.