The Effect Of Venture Capital In Corporate Governance

With the continuous development of China’s capital market, VC has multiple advantages as a newkind of financing way gradually been known. It not only improve the financing environment of privateenterprises to survive and grow, and into the corporate board of directors, to participate in enterprisemanagement, supervise the enterprise with its powerful, rich management experience in industry andconvenient network of resources to assist enterprise to provide value-added services, which affect corporategovernance structure. More and more private enterprises in order to break through the capital bottleneckand netting network introduce VC. However, VC has a profit-driven, the governance role of VC to theenterprise the governance effect of performance is not the same. At the same time, VC in participating incorporate governance and the contradiction of enterprises also emerge in endlessly. Therefore,understanding of corporate governance of VC, helps to deepen the understanding, risk prevention, topromote enterprise introducing VC is of great significance.This article reviews VC management related literature review and theoretical analysis, NVC-lightingholding Limited as the research object. First, analyzing the governance approach of VC of NVC-lighting,then describes value-added services for enterprises of VC, NVC-lighting is analyzed on the financingprocess, strategic integration, business performance brings to the enterprise governance effect.Through the analysis found that VC to NVC-lighting board governance approach, using a phasedinvestment, financial instruments and the governance supervision and constraint of joint investmentcompany, to NVC-lighting provides value-added services, so as to help enterprises to perfect thegovernance structure, motivating entrepreneurs, cultivate excellent entrepreneur, focus on enterprise growthand enhance the enterprise market recognition and assist enterprises to develop strategic developmentdirection, the enhancement enterprise core competitive ability.But the study also found that VC andenterprise, founder of agency problems, introducing VC in a business may face the risk of being acquired.Therefore, this article introduce VC risks according to NVC-lighting, raised five enlightenments. First, theenterprise should use camera governance mechanism, alleviate VC and entrepreneur’s moral hazard;Second, keep control of the long-term financing plan; Third, fully understand the investors, the riskassessment; Fourth, Set the venture capital exit barriers; Fifth, the development of enterprises need to bindthe rights and interests of stakeholders. This paper hope through VC analysis of NVC-lighting effect ofcorporate governance,to recognize the benefits of VC and shortage, for VC was introduced into our countryprivate enterprise to provide reference and reference value.