Research On The Causes And Countermeasures Of Venture Capital Guidance Funds In Yunnan Province

In the context of China's implementation of a number of developmental strategies such as industrial upgrading,innovation economy and focusing on the development of small and medium-sized enterprises(SMEs),the strategic position of venture capital investment becomes increasingly highlighted.In order to promote the development of China's venture capital investment industry,to promote the leap-forward development realized in many SMEs in a short term,China's venture capital investment-guided funds start to grow rapidly.It has been proved that venture capital invest-guided funds,as a special venture capital,play a good role in overcoming the entrepreneurial market failure and supporting early start-up projects.Since the first emergency of venture capital investment-guide funds in the form of laws and regulations in 2005,China has set up more than 200 national,provincial,municipal,and district-level guided funds.Venture capital investment-guided funds are now featured by multiple principal-agent relationships and information asymmetry.With the gradual deepening of operations,the risks confronted are becoming more complicated.Yunnan starts late regarding the development of venture capital investment-guided funds.In addition,the problems in terms of the risk of guided funds are posed due to the restrictions of many factors,such as relatively backward local economic development,weak fiscal strength,lagged-behind financial development,and the difficulty to recruit outstanding sub-funds.It becomes urgent for the sustainable development of venture capital investment-guided funds in Yunnan Province to control the risk of guided funds effectively and to give full play to the effectiveness of policies concerned.First,on the basis of examining the research dynamics and related theories of the risks of guiding fund in both China and foreign countries,this paper analyzes some excellent domestic and foreign guiding fund cases and elicits some implications.Second,after introducing the current development status and development environment of the venture capital guiding fund of Yunnan Province,the paper studies the major risks of Yunan's venture capital guiding fund and the causes for the risks by utilizing the methods of comparative analysis and the game theory.Finally,the paper proposes some countermeasures according to the major risks faced by the venture capital guiding fund of Yunnan Province.