| In the stage of knowledge & economics, economic growth and job opportunity all depend on successful innovation,that is the result of research and development can be applied into commerce and industrialization efficiently. During the innovation, how to collect and use the capital is one of the essential stages in resource collocation. And this venture capital of finance tools plays an important role in providing financing and capital operation. Therefore, the Venture Capital is defined as an investing behavior, which can enhance the development of high-technology industrialization ,using the form of share-list to invest in the research of products in the middle-sized and small-sized enterprise, and eventually gain the profit by transferring the share-list. Venture Capital is a new mode of capital operation, consisting of finance, science technology, innovation, management, and market. It's a necessary transition from industry economy to knowledge economy. In addition, by quickly inverting the technology fruit into productivity and upgrading the structure of economy, it will boom our business. So the government and enterprise both pay attention to Venture Capital all over the world. As we know, investment bank(it can also be called securities company in our country)is inherent with Venture Capital, its finance medium and invested entry is vital to Venture Capital. On one hand, every stage in the fundamental process of Venture Capital has relation to investment bank. On the other hand, Venture Capital will greatly improve the self-development and relevant innovation business of investment bank. Therefore, it is significant to discuss the relationship between Securities Companyand Venture Capital in our country, which can perfect the mechanism of Venture Capital in our country.The following is the main point of this article:In the first paragraph, we will introduce the fundamental meaning of Venture Capital, as well as its essential feature in five aspects. Then describe the components of Venture Capital Market; its distinction to normal capital market; structure and entry; government's situation and function in Venture Capital. Finally, introduce the five approaches in Venture Capital.In the second paragraph, we summarize the development of Venture Capital in Securities Company at home and abroad. Of course, by analyzing the mode of securities company in developed countries, we can find four characteristics: 1) different opinions in understanding the concept of Venture Capital. There is no specific definition and obvious frontier between Private Equity and Venture Capital, which will promote the innovation thought and broaden the horizon of securities company's business.2) The venture enterprise and project are provided not only with finance support, but also with the entire consultant about accounting and capital operation.3) how to choose the suitable developing mode by considering the self-characteristic resource and superior competition. 4) Apply and innovate the finance tools when withdrawing from the Venture Capital diversely. In my opinion, it is lack of experience about Venture Capital and the restraint of relevant policies circumstance. Nowadays, the venture capital business in Securities Company is being run in sole mode, what's more, there are no good methods to control risk. All of them need us to survey the facing situation carefully; there is no hesitation but do our utmost to deal with them.In the third paragraph, we mainly analyze the macroscopically policies, development opportunity, and external economy circumstance.On my part, though the securities company is constrained to confront with venture capital currently, in a long run, it's a trend for us to encourage and support them to deal with venture capital directly. We also have the good atmosphere: First, the microscopically policies is becoming nicer. Second, the market of venture capital reckon on Securities Company to deal with the lacking funds problem. Third, domestic venture capital has the potential m... |
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