The Research Of The Catalytic Mechanism Of Venture Capital In Technology Based Small And Medium Sized Enterprises

As the incubators and boosters of small technology-based firms,venture capital provides a great financial channel for small technology-based firms. It is good for science and technology innovation and promoting knowledge-based economy development. Venture capital for small technology-based firms not only provide financial support,but also offer many kinds of value-added services,which play a constructive role for the growth of small technology-based firms.But the development of China’s venture capital is really late.At present,the relevant laws and regulations are not perfect the exiting mechanism is not enough good and the role of venture capital are not fully understood. The disincentives limit a rapid development of venture capital in China and growth of small technology-based firms.This paper studies on venture capital for promoting the growth of small technology-based firms. Firstly,according to the theory of venture capital and the theory of the growth of small technology-based firms,many kinds of concepts are defined,such as venture capital,small technology-based firms and other related. secondly this paper setup a general systemic mode focusing on the different roles that venture capital plays in the process of the growth of small technology-based firms.thirdly according to the concrete cases,the paper verify that venture capital indeed plays a positive role in the process of the growth of small technology-based firms.the main conclusions of this paper include three points:First,besides the help of finance,it is important that venture capital supporting for small technology-based firms is offering value-added services which include the establishment of modern corporate system、assist of the recruitment of senior management、improvement of the internal management system、building the network of marketing management and promoting reputation of corporate.Second,on the basis of corporate lifecycle theory, the growth of small technology-based firms are split into four stages:seed、creation、growth and maturity. The small technology-based firms in the process of growth are mainly confronted with four risks:financial risk、technology risk、market risk and management risk. The small technology-based firms faces different risks in different stages and the venture capital will provide all kinds of help in each stage.it will promote the growth of small technology-based firms.Third,by analyzing the influence of venture capital to the cases,venture capital indeed play an important role to improve the growth of small technology-based firms,but it is still submit to many factors.