Study On The Legal System Of Exit Mechanism Of Venture Capital In China

With the deepening of China’s economic development, the venture capital industry has gradually established and grows strong. Venture investment is very different from general investments by its "high risk, high income" "high failure" three determines. The venture capital exit mechanism seems very important in the venture capital four stages because Exited successfully will attract outside capital participation and establish a good corporate image.Generally speaking,IPO、M&A、Buy-back and write-off Constitute the venture capital exit mechanism The initial public offering refers to risk investors in the capital market, its all ventures, for the first time publicly listed shares issued to the public hold the company’s securities. M&A in is by other enterprise merger and acquisition finger object of venture investment enterprise, thus making the venture capital complete exit way. Venture capital companies in relatively mature and on track, the risk of corporate management or employees of securities purchased as part of the risk was held by the venture capitalists shares. Write-off is a not successful venture capital exit mechanism. But using this way can expand loss. The existence of risk investment exit mechanism realizing risk investment value, satisfy the requirements of risk investment integrity, helps to attract outside the capital, and improve the investment risk industry overall image and strength.Venture Investment in China 80 years from the 20th century, was gradually beginning to establish With China’s rapid economic development, China’s venture capital industry grew slowly from birth to the process. Risk investment affect economic slow the development of many parts of the development of more and more government attention.As is known to all, the United States is the birthplace of risk investment risk investment exit mechanism, but also the most mature and improve regions. Venture capital industry in the United States in 1946, the formal appeared in Boston. Germany’s risk investment late start in the United States and originated from the mid 1960s. But after decades of development inoculation, Germany has become European countries risk investment in one of the more developed countries. Our Hong Kong venture capital industry developed quite, risk investment exit mechanism also comparatively perfect。Through the understanding of basic exit mode and developed countries, the investigation of the exit mechanism, it can be seen that the exit mechanism establishment and the consummation first need good macro external conditions Combined with the experience of other countries around, this paper also exit a mechanism for venture investment in legal system perfect some Suggestions, such as China’s current investment risk exit mechanism needs to be further improved, increase and rich risk investment institutions subject, expand investment risk capital raising channels and sources, etc.