Venture Capitalists To Exit A Number Of Legal Issues

Exit plays a very important role in the process of venture capital operation. Only venture capital smoothly exit from investment projects and get high profits, can it attract more capital into the field of venture capital. Venture capital have higher requirements of the law. The legal soundness is an important factor that most investors in determining whether to invest or not. The law of venture capital in China is imperfect, which bring many legal obstacles to venture capital and affect the development of venture capital industry. By logic studies and analytical comparison, the paper makes several legislative suggestions of venture capital exit.Firstly, the paper analyzes the main forms of venture capital exit and its legal environments .The Four major forms of venture capital exit are initial public offering(IPO) , sale , share repurchase, liquidation. Each form needs good legal environment .Secondly, through investigate the relevant legal system of the United States, Japan and China's Hong Kong venture capital , we learn many achievements from them. Thirdly, the paper analyzes legal obstacles of China's venture capital. On the one hand, China still has not promulgated rules of the growth enterprise market. On the other hand , it's difficult for venture capital to exit by sale , share repurchase and liquidation in China. Finally, as for legal obstacles of our country's venture capital exit, the paper points out that China must formulate rules of growth enterprise market and revise the law.