Research On The System Development Of Venture Capital Market

Under the new economic normality, the public entrepreneurship and the universal innovation crazily sweep the land of China. Where is the way to go for venture capital market to support entrepreneurship and innovation? Fitting the scientific and technological innovation, financial innovation, management innovation and system innovation, venture capital market has become a real "catalyst", "midwife" and "Garden of Eden" of high-tech industrial development with its inherent amplification mechanism of social capital, transformation mechanism of scientific and technological achievements, control mechanism of financial risk and incubator mechanism of entrepreneurial business.Indeed, technology(science&technology), capital(finance), management, systems are the most active and important factors of social productive forces, whose effective docking, interaction and coupling, are inseparable from the strong support of venture capital market, but can not do without the healthy, steady, high-speed and sustainable development of venture capital market. However, compared to venture capital markets between the US and Germany as well as China, the model, the mechanism and efficiency, there are big differences among the model, the mechanism and efficiency, and the root is the institutional differences. More importantly, there are dual "institutional barriers" of surplus and shortage of system in the evolution process of China’s venture capital market system.Therefore, accelerating the development of venture capital market system into the healthy track, breaking the barriers of dual "institutional barriers", are the major issues to be solved, whose importance, urgency and difficulty become more and more evident.Previous studies at home and abroad, are focusing on the ideas of raising system, investment running system and shed out system of venture capital as well as the impact factors to the development of venture capital market system, and tending to standardize the methods of analysis, and lacking not only the comprehensive, systematic, in-depth discuss to the development, but also the empirical test to development degree of venture capital market system. Therefore, this paper focuses on the basic development path, driving factors, drive mechanism and the evaluation of the driving level venture capital market system, trying to find a breakthrough to the development of venture capital market system, and construct the ideal development model with Chinese characteristics for venture capital market system. This study, to promote venture capital market initiatively to face, early to adapt to the new economic normality, to improve technology, finance, management, institutional innovation mechanism of venture capital markets, to propel the construction of multi-level capital market, has great theoretical and practical significance.The full text is divided into six parts:First, introduction. Through summarizing and carding the research literatures, It finds out that institutional differences are the root cause of the differences among the model, mechanism and efficiency of venture capital market in different countries.Second, theoretical basis of the study. Starting from the basic assumption of the new institutional economics, It traces the system theory, agency theory, property rights theory, and systematicly summarizes the essence of game theory and information economics. Meanwhile, in order to facilitate this writing, It also does the definition for venture capital, venture capital markets, venture capital market system.Third, the development path of venture capital market system. The nature of development of venture capital market system is the process of externalities internalization, the subject is venture capitalists, entrepreneurs and financiers, as well as government, the direct cause is the supply and demand imbalance of system. However, there are inertias and lags in the process of institutional development.Therefore, the ideal model for the development of venture capital market system is a two-stage action groups and double-institutional arrangements.The breakthrough for the development of venture capital market system with China’s characteristics is broken double "institutional barriers".Fourth, the driving factors and its role in the development of venture capital market system. According to their path dependence and driving mechanism for the development of venture capital market system, they can be divided into the induced and mandatory driving factors, and correspondly form the induced and mandatory driving force. The former plays a fundamental and leading role,which is a prerequisite for the existence and development of the latter, but its effect is relatively slow process and needs step by step. The latter plays a supporting character and accelerating effect, which is the security for the continuous development and improvement of the former, but the role of the process is relatively fast with advantages of immediate results, economies of scale, cost savings and so on. On this basis, this paper cites the foreign typical development-driven mode of venture capital market system, and analyzes the development-driven status quo of China’s venture capital market system.Fifth, the evaluation on the development degree of venture capital market system. Based on evaluating and verifying the development degree of the regional venture capital market system, this paper proposes related measures on innovation and improvement of venture capital market system: one is to stimulate development needs of the venture capital market system; the second is to change the development supply of venture capital market system.Sixth, conclusion. The main point, innovation, the lack of research and future research directions of this article are combed and summarized.