U.s. Venture Capital Fund And Its Implications For China

Comparing to other species of fond, American venture fund is specially operated. First, buy-side financing characteristic of venture capital decides that venture fund is mainly privately offered. Second, the combination of portfolio theory and principle of specialization guarantees fund's high yield. Third, the exit of venture capital heavily depends on financial market system. Small business investment company which boomed in 1960s survived again in 1990s. At the same time, limited partnership has gradually prevailed. The thesis reveals American venture fund in eight aspects. The development of American venture fund benefits from the favorable circumstance, including advanced financing market, government support, high technology industry and venture culture. The success of American venture fond is significant to China. Venture fond has not been operated well since it's introduction to China 15 years ago. In order to develop Chinese venture fond, it is necessary to strengthen government support, establish effective capital exits, develop privately offered fond and foster venture capitalists, and etc.This thesis comprises three sectors. The first sector analyzes the operation of American venture fond after confining the conception of venture fond. The second sector reviews the history, actuality and circumstance of American venture fond. The third sector makes suggestions for Chinese venture fond after drawing lessons from American experience.