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Venture Capital Exit Legal Mechanism

Posted on:2013-01-11Degree:MasterType:Thesis
Country:ChinaCandidate:X X JiaFull Text:PDF
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Venture capital as a capital operation, should be used in the world widely, especially in emerging economies such as China. It has become increasingly active performance and has attracted worldwide attention. Venture capital invest in high-growth potential companies in the start-up stage with great risk on the basis of the investment object and provide equity capital and management services to improve business ability and financial capacity. This may achieve beyond the other ordinary business by leaps and bounds. A model of venture capital as an equity investment, not the purpose of holding investments, nor is the ownership of the investment object. Its fundamental purpose is to obtain the establishment of venture capital exit system based on high return on investment.The scope covered by the venture capital legal system is extremely rich, including the system of organization of venture capitalists, the risk of Corporate Governance, risk grading system of the project, the evaluation of risk-based entrepreneurial capacity, financial instruments portfolio system, multi-period investors convergence system, venture capital exit mechanism...In view of space limitations,and the author's limited research capabilities, not its full range of comprehensive discussion in this article, this article will focus on risk investment exit mechanism. The exit of venture capital venture capitalists not only through certain channels to recover the pre-venture capital, but also achieved a high risk high return on investment, while also ensuring the return of funds of venture capitalists to enter the next round of venture capital activities. Venture capital exit mechanism for venture capital to provide the necessary liquidity back to the development of risk capital to provide the necessary guarantees. Special risk of investment income in the exit link has been fully reflected, also officially in the exit phase, high-yield only attract more and more capital to participate in this capital operation, a virtuous cycle for capital and investment. The optimization of the environment provide good support. Thus exit is indeed the key mechanism of Venture capital, on the other hand, in view of the regulatory environment and a market changes led to the forms and channels of the China venture capital exit has undergone significant changes since the last year, before research and discussion is not reflected in the establishment of a more robust and effective exit mechanism, play an important role to solve the current bottleneck in the development of venture capital, must be given sufficient attention.Last couple of years, especially the endless argument of the domestic venture capital trap "winter", the number of venture capital exit greatly reduced, golden time is difficult to reproduce the situation, improve the exit mechanism of risk investment is imminent, in order to guard against financial risks regulatory supervision scale than in the past is more specific and stringent requirements to standardize the market order to provide a strong guarantee, but also put forward higher requirements for the exit of venture capital, in the past one to seek listing of the "rich over night" mode already no longer continue, and it is particularly important to seek a more reasonable way to exit, highlighting the various exit channels of both is the purpose of the wording and conclusions of this article.
Keywords/Search Tags:Venture capital, Exit channels, IPO, M&A, Capital markets
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