Venture Capital And High-tech Industries

Financial institutions will spontaneously develop and evolve where there is a demand for capital (Joan Robinson, 1952). In the traditional financial market, the advanced and high technical findings can not get enough capital to support their industrialization. So venture capital came into being under such situation, and it acts as an instrument for financing innovations to provide a "supplement" function for the financial market through its special investment methods.The era of knowledge economy is coming in the 21th century, and the advanced and high technical industry props up the era. Due to the close connection with the advanced and high technical industry, venture capital has draw attention of the world. So it is necessary for us to absorb the successful experience from developed countries, and we must establish a set of institutions about the venture capital under the consideration of our present situation. And all these are important for our country to compete with others in the world economy.This paper consists of four parts. Part One states the concept, characteristics, composing factors and impact of venture capital. Part Two analyses the relationship between venture capital and industrialization of the advanced and high technical findings. Part Three introduces the development and problems of venture capital in our country. Part Four gives some suggestion to improve our own institution of venture capital.