Venture Capital’s Backgrounds And Operating Performance Of Minor Enterprises

VCs provide financing for small and medium-sized enterprises andvalue-added services, to develop a mature company pushed by way of IPOsecurities market, and then exit from the secondary market, thus achieving capitalappreciation. In the growth of SMEs in the IPO process, venture capital firms willinevitably be involved in the management of small and medium enterprises, have amaterial impact on the results of operations of SMEs, and a reasonable choice ofIPO timing. Most of the previous studies focused on venture backed companies ornot,comparative studies of the existence but less studies on the background of VCsand performance of SMEs. With the establishment of GEM, VCs generally involvedin the training and operation of the companies listed on GEM, thus differentbackground VC institutions behavioral differences of great significance.This study is based on the existence of the VCs, but in-depth backgroundattribute to the VCs, research specific differences in the development of start-ups,as well as IPO impact of different background VCs, and to explore the differencesin the formation internal reasons, in order to determine the different backgroundrisk investment institutions play different roles in the Chinese market. Thisconclusions of the study show that VC’s background doesn’t have greatsignificance on company performance.That will give the GEM market theoreticalreference for further development of the necessary policy system. It also providesdecision-making guidance for selecting VCs into GEM market.