High-tech Industry And Venture Capital

Twenty-first century is experiencing one of the fastest paces of high technology development. High technology will play a key role in industrial structure adjusting and economic growth. Developments of high-tech and related industries have become a strategic objective in a nation's economic growth planning. China, as a developing country, feels even more urgent in high tech development. But due to its nature of high risk and large investments, high technology industry is experiencing difficulty in attracting sizable funds. It has thus become a top priority for developing venture capital business.This article, by taking on the relationship between venture capital investing and high technology development, gives an economic analysis of venture capital from micro- and macroscopic level. It establishes that scarcity of funding is a large obstacle to the nation's high technology development. It finally proposes relevant solutions to various problems faced by venture capital business.