The Study Of Venture Capital Exit Manner And Performance

Venture capital, originated in the 20th century,20 years in the United States, but very slow initial development, in the fifties and sixties before gradually developed a global scale, information technology and bio-technological advances will push the development of venture capital industry’s peak period. As a venture capital investment is different from the traditional way of development and progress of high technology has played a very important role, while high-risk investors bear the risk also received the corresponding high return on investment, which It is also for many years been putting into the venture capital industry in the social capital of the attractions. Venture Capital in China started late contrast, from the eighties of last century and since then only twenty years of development history, is still in growth stage.Exit of venture capital enterprise refers to the risk or risk to a certain stage of project development, venture investors will choose the exit a certain way to achieve return on investment. Venture capital can exit out the manner in which a direct impact on venture capital investments. Exit of venture capital part of the entire venture capital process is very important part. The current risk of capital exit of the main repo, mergers and acquisitions and IPO market, which means the IPO exit can get much higher than the return on the first two out, and thus become the most popular of many venture capitalists exit ways, IPO exit channels are will directly affect the sound and smooth the entire venture capital industry.Before 2009, GEM has not yet established in Shenzhen, the Shenzhen SME Board, GEM and NASDAQ IPO of China’s venture capital investors to exit the main channel. But the Shenzhen SME Board’s listing requirements higher, Hong Kong and the United States due to the different regulatory policies will also have a lot of inconvenience, the establishment of a domestic entrepreneurs board has become an urgent need. October 23,2009 the Shenzhen Stock Exchange GEM successful landing for China’s venture capital funds provide a new and effective IPO exit route, more and more small and medium high-tech companies successfully listed on the GEM, as of 2011 3 22 193 successful companies listed on GEM, many of them have background in corporate venture capital. Since listing on the GEM are mostly high-tech enterprises or development prospects, coupled with the general enthusiasm of investors, the GEM listed companies often get very high price-earnings ratio, the average current GEM reached 60.68 times earnings, far higher than other sections.This article was first described in the first part of the concept of venture capital, and analyzes different from the traditional venture capital investment in the five characteristics, summarized high-tech venture capital for small and medium enterprises and development of the significance of the role of high-tech industries. The next article also described the meaning of venture capital exit, described the venture capital venture out for the achievement of cash flow, meaning to maintain liquidity and risk investment in an important position in many areas. This article describes the current and then the more common of the four international venture capital exit, including the IPO, repurchase, acquisitions and liquidation, and the way these four out of their own characteristics are described and listed with their respective advantages cited weaknesses or strengths and weaknesses. Then the author analyzes the current status of venture capital exit, points out the exit of the main ways venture capital for the repurchases, mergers and acquisitions and IPO, the higher threshold because small plates listed on the GEM system was introduced not long ago there are still gaps and limited number of listed companies, the current buyback, acquisitions are still some way to account for the largest share out, but IPO, venture capital in China is increasingly becoming an important way out. Comparison of the first part of the final exit of venture capital means the domestic stock market IPO difference plate selected for the Nasdaq market, Hong Kong GEM, the Shenzhen SME Board and the Shenzhen stock market GEM four plates, on their respective characteristics and for listed companies in size, profitability, shareholder requirements and so the number of introduced and compared.In this paper, the second part of the exit of venture capital in the performance of a study and evaluation of relevant indicators and evaluation system. First points out the exit for the venture capital performance evaluation should be both effective and efficient from the start, and analyzes the effectiveness and efficiency of how it affects the performance of venture capital exit. And then were enumerated and explained the two aspects of effectiveness and efficiency evaluation. Withdrawal benefit in the venture capital index, select the exit yield, exit costs (time spent trading costs, intermediary costs), exit the internal control over price and other indicators of motivation, and select them as the causes and effective evaluation on an analysis of the impact of withdrawal benefits. Efficiency in the venture capital exit indicators, selected out of the market capacity, market size and exit out of the three evaluation time, and likewise also the efficiency of selected index them as reasons for withdrawal and its impact on the efficiency of an analysis of exit.Third part is the risk of capital exit GEM Empirical Study. GEM was finally in the long-awaited landing in China in 2009, Shenzhen Stock Exchange, the majority of investors also give considerable enthusiasm to actively participate in the GEM account transactions, as of March 22,2011 a total of 193 successful companies on the GEM listed, many of them companies with venture background, the background based on these risky investments in companies listed on GEM data to the venture capital exit is the Empirical Study of Empirical Study to be completed this article. In this section, the paper first analyzes the IPO of Venture Capital in 2009-2010 the situation out, and then into the empirical part of this article. In the empirical part, first carried out may affect the investment performance of the seven factors were analyzed as explanatory variables and the underlying assumptions made, these seven assumptions are:assumption 1:a long cycle of venture capital investment projects tend to be more high investment rate of return; assumption 2:the risk of practicing a long time investors will generally have a richer experience and relevant expertise, often a higher return on investment; assumption 3:the registered capital of more venture capital investment institutions can usually get a higher return on investment; assumption 4: Non-state-controlled venture capital investment return rate is generally greater than the state-controlled venture capital rates of return; assumption 5:The larger the initial investment venture capital investment rate of return lower; hypothesis 6: up to a developed economy and commercial culture in deep areas of venture capital firms, venture investment projects with higher returns; hypothesis 7: Venture capitalists invest in high-tech industry received investment income than investments in traditional industries achieved return on investment. Next is a sample data collection, through three steps of data selection, have been effectively sample data. Included in the 67 GEM are venture-backed listed companies and 70 listed companies to invest in these venture capital organizations.The last part is the article Study limitations are described and presented in the venture investment exit mechanism for policy recommendations.