Organization Mechanism Of Government Guidance Fund In Venture Capital Investment

Virtually, Venture capital investment is a highly professional market action, the government as public managers should not directly involved. all functions of government that deal with venture capital should focus on developing a fitting environment, reduce transaction costs and eliminate market organization predicament. Considering the situation of present, venture investment guide fund is becoming the important means of China’s government in improving market financing conditions. Based on the change, in the new market condtion,analyse and research the role of our country government in venture capital market will be provided with strong practical significance.Based on the related analysis, we found that the Government guide fund has made positive remarkable achievements in attracting private capital participation in venture capital investment, but from the view of government, It do not take measures to eliminate the average investor’s market organization predicament in participating venture capital. Considering the role of the government in venture capital investment, it is necessary to further analyzing the government behavior to how to improve market conditions, eliminate organization predicament. First This paper analysis the reason of venture investment market’s organization predicament with theory konwledge, and through a two types of investors’ two issue asset allocation model proved that the consequences of organizational dilemma without government involvement; Then based on the causes of organizational predicament we introduced the government participants before models, analyses and suppose the influence of government guiding behavior to the other participants, explaining the government behavior, how to eliminate the market organization predicament and setting whether eliminate organization dilemma as evaluation standard of government guiding behavior effect; Next based on the previous consequence,we continue to discussing the related influence factors on the government guiding behavior effect; Finally put forward the policy Suggestions about China how to enhance the financing efficiency of venture capital industry.