The Risk Control Research On Private Equity Financing In Small And Medium-Sized Technology-Based Private Enterprise In China

In recent years, though the small and medium-sized technology-based private enterprises have played more and more important role in national economic development of china, but there are many elements restrain theirs growth, among the rest, financing difficulty is the biggest obstacle in the course of theirs development. Under the circumstances, the private equity financing as a new financing way becomes to be the best option of the Chinese small and medium-sized technology-based private enterprises.But the process of the private equity financing is very complicated, in the whole course, there are many links from making financing plan, negotiating, signing financing agreements and exiting, and the possibility of failure consists in the each link. In china, the private equity financing is still at an early stage of development, so all the Implementation details are in the process of groping. Because of their own limitations, the small and medium-sized technology-based private enterprises have greater odds to be at risk. For this reason, it is very significant to research the risk identification and the risk control from the process of the private equity financing, which conducted by the Chinese small and medium-sized technology-based private enterprises.This paper studies with the standardizing analytical method, the literature research method and the qualitative analytical method. It starts from stating the Chinese small and medium-sized technology-based private enterprises are in the condition of financing difficulty, and it indicates the reasons of conducting the private equity financing. Then, from the fields of the enterprises, the investors of private equity and the objective economic environment, it uses the case analysis method to unify cases, analysing the risks of the private equity financing, which conducted by the Chinese small and medium-sized technology-based private enterprises. Finally, aiming at these detailed risks, the paper comes up with some specific suggestions in the risk control.