Probe On High-tech Enterprises Conduct Equity Financing Through Absorbing Venture Capital

In the 21 st century,more and more traditional companies are gradually declining with the formation and rapid development of the knowledge economy.Meanwhile,high-tech enterprises have developed and gradually become the main power that promotes the rapid and healthy development of national economy.High-tech enterprises have their own development models and characteristics compared with the traditional enterprises,therefore,difficulties and problems they encountered with are also pretty different from the traditional enterprises.Among them,financing issue has become the common problem for high-tech enterprises.For high-tech enterprises,existing financing channels include fund,bank loans,commercial credit and private lending,but those methods still cannot effectively solve the difficulties of financing.Hence,the venture capital introduction has become a new method to solve the financing difficulties for many high-tech enterprises.Although the late start of the venture capital in our country,but as the venture capital has been widely applied in equity financing,which get enterprises concern about some existing problems,and regulators also urgently need to understand the relative theory to assist in the regulation of conducting equity financing through venture capital absorption.Simultaneously,the research on the high-tech enterprises absorbing the venture capital is still lagging behind,and the research on issues that involved the its history development and its various aspects of the steps has not yet formed a systematic theoretical results.Thence,how to depart from China’s actual conditions and the research on the systematic and practical operability of financing under the background of venture capital funds absorption is of great theoretical and practical significance.Under the background of this premise,this paper adopts the method of combining theoretical analysis and case analysis to study the feasibility of high-tech enterprises conduct equity financing by absorbing venture capital funds.To begin with,this paper expounds the connotation,applicable conditions,motivation and theoretical basis of high-tech enterprises absorbing venture capital funds.And then the author introduces the case,which includes backgrounds and financial effects in the investment of the target companies and the venture capital institutions.the author analysis the Timesbole invests Jiesai Technology Case mainly from the following four aspects:(1)Selecting and pricing on Timesbole investments JieSai Technology Project;(2)Project management and value-added services after Timesbole invests Jiesai Technology;(3)Exiting Conventions and Path of Timesbole invests JieSai Technology project.High-tech enterprises conducting equity financing through absorbing venture capital plays an important role has been proved after the case is analyzed.Finally,following experience was obtained:(1)Finance to facilitate the rapid development of JieSai Technology;(2)What Timesbole bring about is the core resources of value-added services after investing JieSai Technology;(3)IPO is the best way for venture capital firms to exit high-tech enterprises.