The Study On The Financing Of High-tech Enterprises Growth Stage

The theme of the competition in modern times is the contest between science technology and economic strength. As the leading industry of national economy strategy, the high-tech enterprise promote economic development mode and layout adjusting the industrial structure. Therefore, all countries pay high attention to the development of high-tech industry. As a very important stage in the life cycle, the growth period is particularly important to development of our country’s high-tech enterprises. What’s more, it is related to the overall development of enterprises in the future. Compared with the high-tech enterprises’seed stage, venture period and the mature period, demand for funds is greatest for the growth period, it can be ten times the venture period. Development of funds and commodity market is now the main task during the growth of high-tech enterprises. Enterprises need to supple the production equipment to expand the market needs, in order to stand out from the increasingly competitive market environment. And some enterprises at the growth period may be in a deficit state, they need external funding to turn a profit. In general, when enterprises face the expansion of capital requirements, it will increase the financial risk, thereby increasing the future investment income uncertainty. Even if the initial products have occupied a certain market share, scale of enterprise products also need to be further expanded. Only when the high-tech enterprise expand the scale, cultivate more excellent talents, they can gain more profit, then make it ready for a smooth transition to maturity, which is dependent on the supply of funds. That’s to say, the growth stage of high-tech enterprise plays an important role in the development of enterprises.During’the12th Five Year Plan’, the international situation has become more complicated, the urgent need for us is to speed up the economic development mode and adjust industrial structure, and how to develop high-tech enterprises is even more worthy of attention. The development of high-tech enterprises rely on the capital, the development of science and technology innovation, talent innovation also depend on capital. If capital problem can’t be solved, it will directly affect the development of our country’s high-tech enterprises, and have a threat to the development of our country’s national economy. Financing is a dynamic process of selection of financing structure and mode. But the high-tech enterprise during the growth period exist a huge problem in this dynamic process. First of all, since the enterprise’s internal primitive accumulation is seriously insufficient, the scale of operation is limited, the internal governance structure is not perfect, the existing enterprise profitability is not enough to support the withdrawal of venture investment funds, so their funds are limited. Secondly, the choice of the financing way is too single, which overly depend on government subsidies, tax support mechanism, long-term debt. Venture investment, investment in the GEM market and the OTC market can meet the financing demand of the high-tech enterprise during the growth period, but the enterprise use those financing ways less. The capital market of our country has not set up a multi-level capital market, and cohesive mechanism between the capital market is not perfect. Compared with the main board, the financing function of the GEM market, which is suitable for financing of the high-tech enterprises during the growth period, is more restricted, trading mechanism is irregular, turn plate mechanism is imperfect, exit mechanism is also not perfect. And now Chinese the high-tech enterprise during the growth period has not yet formed a clear understanding on how to use its own advantages to attract venture investors’attention, risk investment mechanism has not been established. At the same time, the high-tech enterprise during the growth period has the following characteristics:more intangible assets, less tangible assets, it will inevitably lead to insufficient financial collateral. In addition, as high degree of proprietary products and complexity, it is difficult for the banks to have a deep understanding of the high-tech enterprise’s products and technology. It is inevitable that the information between banks and enterprises is asymmetric. So the loan amount that the banks through the credit guarantee to the high-tech enterprise during the growth period is small, and it is difficult to form a scale, it cannot meet their funding needs. Finally, on the formulation and operation policy, given the abnormally large fund demand of high-tech enterprises during the growth period and large amount of financing restrained, the government’s lack of agencies specifically service for the high-tech enterprise during the growth period. At the same time, the existing fiscal and tax policies for the popularity of high-tech enterprise during the growth period is not popularized, the direct subsidies project is only for the specific project in technology which meets certain conditions, benefit of direct subsidies is not wide. The emergence of those problems makes financing ability of the high-tech enterprise during the growth period greatly constrained, difficult to fill the funding gap.This article embarks from the life cycle theory, pecking order theory and credit rationing theory, then individually select the high-tech enterprise during the growth period as the object of study. analyze the financing status and financing problem from internal and external of the enterprise management, combining with the successful case of MIUI company, learning from the experience and enlightenment of endogenous financing of employee stock ownership and external financing risk investment of Millet company, find out the suitable financing way for the high-tech enterprise during the growth stage, starting from the internal and external conditions and puts forward related suggestions to solve financing problems of our country’s high-tech enterprise during the growth period.