Research On The Legal Form Of The Venture Capital Guiding Fund

From an international perspective,government venture capital guiding fund(VCGF)has become an effective instrument of government intervention in the venture capital market,which successfully leverages social capital investments into Small and Medium Enterprises(SMEs),and promotes their development.The YOZMA fund of Israel,of which the organization and governance structure consistent with the nature of government venture capital guiding fund,provides a successful sample for the development of China's VCGF.Venture capital guiding funds are booming all over China,many government regulations,either in the central government level or in the local government level,are implemented in order to provide operational guidelines to the venture capital guiding fund.However,while lots of local governments are launching the venture capital guiding fund,there are many problems coming out at the same time,which restrict the sustainable development of the venture capital guiding fund itself as well as the development of SMEs and other positive externality effects.These problems are largely from the choice of the organizational form of the VCGF in the terms of regulation.This thesis aims to reveal the operational difficulties resulted from the organizational form the regulations,and the contradiction between the nature and the legal form of VCGF.Based on the analysis,the author proposes and proves the suggestion of changing the form from public institution to corporation in order to improve the legislation of the VCGF.This thesis consists of six sectors.The introduction sector introduces the background and the significance of this research,including the research method and the thinking of the author.In the first chapter,the author firstly clarifies the some relevant conceptions and introduces the origin and development of Venture Capital Guiding Fund(VCGF)in the world,especially the background of the YOZMA in Israel.Based on the analysis of the development of the VCGF all over the world,the author gives a brief introduction of the development of VCGF in China,including the historical background,legislation and the problems arising such as:Power Rent-Seeking problems,Absence of Supervision,Excessive Restrictions,Divergence of Interests,Small Scales,Low Efficiency and so on,which obstruct the VCGF to meet its goals.From the Public-Private Partnership theoretical analysis,the author suggests to determine the form and design the governance structure of the VCGF on the basis of clarifying its nature and character rather than just making the rule in the regulations.In the second chapter,from the research on the historical development of VCGF in China,combined with the analysis on the operation methods of public institution and corporate fund,the author makes the conclusion that the VCGF belongs to "profitable State-Owned Asset".Obviously,the form of public institution is not consistent with the nature of VCGF,which led directly to the operation dilemma showed in the analysis above.In the third chapter,the author starts with in depth analysis of the main theories concerning of the public institution and points out the problems resulted from the design of the organizational form and the governance structure under the current regulations.The last chapter is to summarize the thesis and make the conclusion.Considering the reasons how the form and the governance structure of YOZMA guarantee to realize its policy-oriented destination,the author brings out the suggestion to change from public institution to corporation fund.The venture capital guiding fund should take the form of corporation in order to adapt with its nature which would be better to meet the goal of the policy.