Comparative Analysis To Performance Differences And Determinants In Venture Capital Between China And The United States

Chinese economy has operated by amazing speed after the reform and opening-uppolicy. With continually increasing economic aggregate, highly arising Yuan-dollarexchange rate, it comes out plenty of venture capital companies, by the same time, whichappeals a lot of foreign VCs. Whatever it’s the quantity of the projects, the amount offund, opportunity of successful exit or internal rate of return, we can feel China’s VCmarket that has played a vanward part in promoting technical transformation and supportcountry’s innovation strategy. In the Unite State, VC industry has invested technologyarea such as Apple, Microsoft, Yahoo, and the industry has grown for seventy years. Wecan combine the experience of its development and the China‘s national condition inventure capital to elevate the performance of China’s VC market.In this paper, it will compare the US which has tans of VC experience and ChineseVC in the areas of development history, operating mechanism, governmental behaviorand investment environment. It will compare the VC performance differences, analyzingthe micro and macro determinants which effect venture capital performance. At last, itcombines VC theories giving constructive advices to Chinese VC market.There are four sections in this paper:Firstly, in the introduction part, it will state the background and meaning of selectedtopic, introduce VC theories. Then it summarizes and rationalizes papers about VC.Secondly, it analyses development history, operating mechanism, governmentalbehavior and investment environment between the US and China.Thirdly, it compares VC performance differences, tell the micro and macrodeterminants which make effect on VC performance between the US and China.Lastly, conclude and give constructive suggestions.