Research On Venture Capital Funds

National administrative regulations to guide the Fund "on the Venture Capital Fund regulate the establishment and operation guidance" officially promulgated, marking China Venture Capital led the government to October 18,2008, the National Development and Reform Commission, Ministry of Finance and the Ministry of Commerce issued a joint venture investment attaches great importance to the domain. The introduction of the regulations, in line with the development needs in the field of venture capital funds in the legal system, effective protection of innovation and healthy development of venture capital, and thus conducive to the transformation of China’s economic growth model. Venture Capital Fund is unique, the main point of view, it is the most important source of government funding, is funded by the government to attract some social idle funds, the funds are invested with a guide for the development of the initial stage or start-ups, thus bringing them into the right track. However, the current legal system and norms related to investment guide fund field of entrepreneurship has just been established, China Venture Capital Fund lack of clear and consistent guidance, there are still many problems in the process of implementation and application of concrete, its integrity and operational of matching needs to be strengthened, the need to constantly improve and adjust. Therefore, this article through the legal system and abroad Venture Capital Fund to conduct a comprehensive analysis and study reference for foreign-related legal system Venture Capital Fund, summed up the experience, pointing out the legal issues of Venture Capital Fund exist, and propose appropriate solution.This paper is divided into four parts, the first part is the basic theory of venture capital funds, mainly related concepts to guide the Fund, the main features of the establishment and operation of a major role; the second part of foreign venture capital fund operations and legal system construction introduced its successful experience in the United States small Business Investment company (SBIC) program and Israeli start on YOZMA funds, for example; the third part is the status quo of China’s government venture Capital development Fund, the main issues related to the legal system and the existence of, mainly from government financial investment ratio is irrational, inadequate financing guarantees utilization mode, mode of operation and other aspects of inadequate facilities discussed; the fourth part is the question of the legal system to guide the Fund in accordance with our venture capital investment, given the specific rationalization proposals, mainly from government-funded reasonable arrangements, flexible various modes of operation, improve the distribution of benefits and exit mechanisms and other aspects are discussed in detail.