The Research Of Risk Control For Venture Capital Guide Fund Market Operation

At the end of the last century, the United States, Israel and other developed countries had subconsciously supported venture capital industry. Through which they had promoted many SMEs to achieve leapfrog development in a short time, as well as the rapid growth of high-tech industries. Our venture investment career began in 1998. After opening of the GEM in 2009, venture capital funds have shown dramatic growth. Practices have proven that FOF can be a good support for early project phases for small businesses to overcome market failures and effective in promoting the development of the key industry. Up to present, China have established over two hundreds of national, provincial, municipal, district-level Guiding Fund. However, with gradually profound of the venture capital fund operations, the prominent risks generated are being taken seriously. These higher risks are mainly due to the existence of agency problems and information asymmetry in Venture Capital Fund. With the specification of the government-funded, the forms and mechanisms used to protect the market operation and meanwhile the safety of the funds has became a popular topic. This paper is based on the theory of Venture Capital Fund to explore solutions. Focus on the key processes by straightening out the framework of risk control system and the formation of a viable risk control mechanism, through marketization of risk control mechanisms, combined with experience and specific experience in the operation of the advanced areas, together with market research, case analysis, interviews and survey systems analysis. Lastly, this paper provides some suggestions to further strengthen the government risk management.