On The Improvement Of The Legal Environment Of China's Venture Capital

At beginning of the thesis, it gives us some basic concepts of venture capital investment, and venture capital investment histories around world and inside China. Then it tries to analyze the importance of venture capital investment for a country's economic development and national power enhancement. With the discussion of main supporting environment elements for venture capital of a country, the thesis tells us must take all these elements into account when we push the venture capital investment business forward.As a key point, the law environment of venture capital investment is where this thesis will focus on. Through studying and researching the legal environment of venture capital investment of foreign countries, it further illustrates the importance of a good legal environment for venture capital investment. And it regards these areas are where we need take efforts to improve. After that, the article gives the bird views of the legal environment for venture capital in our country, especially lay stress on its weak points.The main purpose of this thesis is to research the pace way to optimize the legal environment of venture capital investment in our country according to our national conditions. So that to protect and push the venture capital investment business developing speedily.To realize the aim of enhancement of venture capital investment in our country, the thesis regards these things below as being very important:Strong support given by country through national legislation; Keeping the vigor of venture capital investment business by building a nice marketing operational mechanism; Efficiency priority rule in legislation related with venture capital investment besides risks moderate control, when considering the venture capital investment has its own characteristics with high risks and high potential gains. How to optimize the legal environment of venture capital investment? Three aspects the article regards need pay huge attention on: to increase the total sum of venture capital supply and as well as the total sum of venture capital need; to enhance the efficiency and profit of venture capital investment; to easy the channel of venture capital quit. The article believes we need comb and modify the related laws to fulfill the need of venture capital investment development. And we had better institute a special law on venture capital investment, so that we can reduce the differences between laws and regulations in different provinces and in different law departments.Specifically, the article raised its suggestion on how to promote the venture capital investment business in China, which include these several areas:The first is to enlarge the scope of venture capital investor, it is necessary and possible to let more investors to enter the venture capital investment area as a capital supplier, say, like social pension fund, like insurance companies, etc. The limitation of venture capital for these institutions needs gradually be reduced.The second is through setting up technical clauses of laws and regulations to prevent the venture capital firms to take enormous risk to gamble the profit, like setting a total investment proportion for a venture capital firm on a single enterprise project. As well as, these laws and regulations initial aim is to stimulate the venture to gain the most in a safety mode.The third is through design a good law system to boost the total venture supply amount and total demand for venture capital.The fourth is to design and perfect the organization mechanism systems and management rules to make sure keep the organizations or firms running in a smooth and efficient way, but still can prevent most of potential mortal risks.The fifth is to use some tax relief methods or other favorable policies to push the venture capital business forward.The sixth is to perfect the exist law of venture capital which should include the venture capital quit from enterprise that venture capital invested in and venture capital quit from the venture capital firms that capital invester invested in. Both channels should be in a easy and smooth mode.The last is to ensure intellectual property rights being protected well. The venture capital mainly invests in high-tech industries, these industries rely on its monopoly holding of intellectual property rights. A good protection legal environments on intellectual property rights is a initial issue for a high-tech company to survive and grow, and also effect the development of capital investment development in China.In the end of article,the writer gives his points on some hot topics about venture capital development in China. Also, regard to a suitble venture capital law for China, the artiacal writer designed a main structure for China venture capital law which maybe some day be created.