A Study On The Risk Management Of State-owned Venture Capital Enterprises

The venture capital investment, which is also called risk investment, is originnated from the end of 19 th century in the United States. In the 20 th century, it started to appear in China.In year 1998, a economist, Cheng Siwei, submitted the propasal named Several Opinions on Promoting China’s Venture Capital Investment. The propalsai was listed as the No.1 Propasal. Ever since then, it started venture capital investment’s development in China.After 20-years-up-and-down, the venture investment of China has become to show a good momentum of rapid development.At present, China has become the world’s second country that contributes the largest venture investment. 。Venture investment has played a more and more important role in China’s economic development, especially in the fields of high-tech industry.Among them, the state-owned venture investment enterprises has always been playing a guiding and leading role. Despite their unique contribution in venture investment, the state-owned venture investment enterprises show various risk problems because of not only venture investment’s nature in terms of low success rate and high risk, but also the existing institutional constraints.Facing with the influencing factors such as the conductive global economic integration, the continuous change of domestic capital market and so on, how to enhance the risk control ability of state-owned venture capital enterprises has become the key way to preserve the value of state-owned assets and capitals. It also become the key job to manage state owned venture capital enterprisesThis study highlights the characteristics of state-owned venture capital enterprises. It also points out state-owned venture capital enterprises’ important role in the Overall Public innovation and entrepreneurship. Through the case analysis, it presents the conclusion that a perfect risk management system will help to improve the efficiency, solve the existing problem of state-owned venture investment enterprises, and provide theoretical basis for the government’s Department of State Owned Assets Supervision and Administration on how to manage the state owned venture capital.Economy theory is applied in this paper. It studies by ways of comparison, case analysis and qualitative comnimed with quantitative analisis. It also pays attention to the combination of theory and practice.This study aims to construct a set of normative and effective risk management mechanism for the state-owned venture capital enterprises, and to provide some reference for the risk control of state-owned venture investment.