Research On Small And Micro Enterprise Financing Angel Investors Perspective Tech Start-up Period

With the intensification of the trial of strength between nations as well as thecontinuous development of science and technology, technological innovation hasbecome an important driving force of a country’s economic growth enhancing thecomprehensive national strength, as a whole, the world economy has entered into astage of innovation and globalization. In order to embark on the road of rejuvenationof the scientific and technological power, we must vigorously promote scientific andtechnological progress and independent innovation. In2012at the annual meeting ofthe China Development Forum, Vice Premier Keqiang Li pointed out the importanceto rely on innovation to promote structural adjustment,"We must adhere to theenterprises as the mainstay, market-oriented". Tech SMEs is an effective carrier toaccelerate the transformation of scientific and technological achievements and toachieve the technological innovation. Research and development in recent years showthat tech SMEs, both in quantity and in quality, has become an important part of thenational economy.In2011, four ministries jointly issued a new business plan Standard, whichdesignated SMEs as three types, namely, medium, small and micro, achievinginternational standards. Internationally, the developed and developing countries haveattached great importance to the development of small micro-enterprises, small andmicro enterprises, which have made invaluable contributions to China’s GDP, taxes,employment and other aspects, especially in attracting social employment, justmicro-enterprises alone accounting for38.7%.Small and micro enterprises in the start-up period of science and technology havemade a special contribution to promote scientific and technological innovation, thebirth of new industries and to boost the overall development. However, financingdifficulties have restricted the development of small and micro enterprises, even to bethe main obstacles of survival. Due to its own characteristics, start-up stagetechnology-based micro-enterprises are more restrictively bounded by the funds,,facing more severe financing difficulties. In recent years, especially in theenvironment of the global economic downturn, the company’s production andbusiness activities have been seriously affected small and micro-enterprisesparticularly. This paper attempts to explore the introduction of angel investors to find a way toimprove the financing difficult situation for lack of financing. Existing domestic andinternational experience shows that angel investors with its unique advantages canplay an important role in the financing of early entrepreneurship. If Angel investorscan efficiently participate in the start-up period of scientific and technologicaldevelopment of small and micro enterprises, it will not only solve this deadly problemof financing and promote the development of science and technology smallmicro-enterprises, but also make an effective use of a large number of civil idlecapital, broaden the civil capital investment channels to create more social value.This paper, on the basis of previous studies, is based on a large number ofcutting-edge literature and practical results, and sums up the development of domesticand international experience and research. It’s combined with specific investment case,to explore the financing bottleneck problems between angel investors and the start-upof technology-based small and micro enterprises and the corresponding optimization.We refine the analysis of the financing of micro-enterprises in the start-up period ofscience and technology; meanwhile, it proposes recommendations on selecting angelinvestors from the perspective of entrepreneurs to provide reference for the realizationof two-way choice.The text is divided into six chapters, first introduces the start-up stagetechnology-based small and micro enterprises, its financing characteristics, the mainmeans of financing in the present and a variety of factors restricting the financing.Next, the article describes the basic situation of angel investors and the strongadvantages of participating in the financing. With comparative study of thedevelopment of angel investors at home and abroad, it sums up the internationalexperience and their own disadvantages. Subsequently, the use of a comparativeanalysis of actual cases shows how to successfully teamed up with the angelinvestment to achieve a win-win situation. It comes up with the main issues andoptimization program, preliminary countermeasures and suggestions from multi-angleas the government, entrepreneurs, investors, legal regulatory, exit mechanism etc. Inthe end, it offers a rational outlook of the future of China angel investment.