Study On Legal Issues Of Venture Capital

As the market economy in China develops, industrial investment funds have emerged to the increasing needs of financial innovation. The industrial investment funds in China started in1990s, and the growth speeded up from2006. However, the legal issues related to the establishment, operation, and supervision of industrial investment funds also turned up with the expanding scale. The development of industrial investment funds is restricted, due to the vacancy of comprehensive rules of law which blocks the construction and perfection of the legal system of capital market as well.The author, who works in the management and operations of industrial investment funds, discusses about standardizing the fund operation effectively to promote the entity economy development, particularly about the setup of the fund with enormous financing, based on analyzing the case about the industrial investment fund of Shandong Peninsula blue economic zone.First of all, the thesis expounds the definition, the feature and the critical meaning of industrial investment funds on economy development in China, leading to the importance and the urgency of the standardizing of the funds. It studies the legal issues on the basis of industrial investment funds, including the legal characteristics, the form, the status and the necessity of improving the funds, with the methods of analyzing, empirical study and comparison in laws and economics researches. In practice, the industrial investment fund of blue economic zone counters various issues on operations, financing and management, which may impact the fund in different ways. By researching on the issues and the legal status through the operation process, the thesis analyzes the reasons and proposes the solutions referring to the experiences in USA, Japan, Britain etc., which can be significant for the setup of industrial investment funds in the future.The prediction of the development of funds industry is the perfect law and strict supervision. The thesis provides suggestions related to the industrial investment fund legal system. First, it is critical to improve the construction of the legal system, to enhance the withdrawal mechanism, and to advance the personal property protection and credit system. Second, measures of industrial investment funds should be constituted. Third, it suggests the revision of the company law, the partnership law, the insurance law and the bank law in China, in order to expand the capital sources of industrial investment. Last but not least, it calls for the perfection of the legal frame-work for industrial investment funds operations, establishing relevant laws and regulations.The conclusion is not only positive to the suggestion on the perfection of industrial investment funds legal system, but also offers a new requirement on the perfect rules of law in the multi-level construction of finance system, which can lead to the industrial investment fund innovation and rapid development.