China Venture Capital Mode Of Operation And Decision-making

The venture capital prospered in western countries after the World War II and soon boomed all over the world. Now it has become a novel financial industry. Today, with the development of high-tech industries, the venture capital also becomes an important motivation to high-tech and economic development in developed country, which mostly owes to its fresh operating mode and effective innovating achievement. In Asia, some countries and areas are also taking great efforts to establish and improve their own venture development in order to help their economy to progress.China also begun to explore the way to utilize the venture capital to develop its high-tech industries in the 1980's, however, owing to some reasons, the process is s very slow. With the arrival of the era of knowledge economy , technology has become the main booster of economy, and more and more people have realized that it is very urgent to complete our own venture capital. The problem is how to establish venture capital so as to fully bring its effectiveness into play, which is the aim of this paper as well.The paper consists of four parts as fellow:The first part is preface, the author points out the importance and the significance of research;The second part introduces the rationales of venture capital, including venture capital definition and characteristic of it, structure of system of it, the process of the coursing of it and its function;The third part mostly investigates the mechanism of venture capital in China, consisting of the following aspects: Research of the fund-raising mechanism of venture capital in our country, The author thinks our country should adopt and rely mainly on the fact that the government lead and the complementary mode of many subjects, but the final direction of Chinas venture capital development is a modetaking non-governmental risk investment as subject; research of the organization mode of risk investment of our country, putting forward the organization modes of several kinds of optional risk investment; discussing how to structure the assessment of venture capital and decision-making mechanism, and choices of its withdrawal system;The fourth part mainly investigates decision-making method of venture capital, and briefly introduces the net present value revising method and material object option law.