Research On The Problems Of The Shanghai Angel Investment Government Risk Compensation Policy,and The Governance Of Shanghai Angel Investment Industry

"People starting their own businesses and making innovations",is undoubtedly one of the hottest words in recent years that can lead to heat discuss in both social and academic,platform enterprises which serve for those innovation enterprises start to show up in an enormous way;Angel investment which provide capital injection for those innovation enterprises also develops in a rapid way.Under this background,the research object of this paper is divided into two parts: firstly,the problems of the "Shanghai Angel Investment Government Risk Compensation Policy",(hereinafter as the compensation policy)which was jointly issued by the Shanghai Municipal Science and Technology Commission,the Shanghai Municipal Finance Bureau and the Shanghai Municipal Development and Reform Commission in early 2016;Secondly,study on the governance of Shanghai angel investment industry.Under this framework,this paper aims to solve two parts of problems,the first is using theoretical analysis methods,including the Theory of Government Functions,Enterprise Life Cycle Theory,Information Asymmetry Theory,Externality Problem Theory,and the Theory of "Rent-Seeking",to put forward its problems and policy amendment suggestions,so that we can control system risk and optimize the policy supply quality;Second is to learn from the angel investment industry governance experience of the United States,and use governance-related issues of non-governmental organizations and the Governance Theory to put forward some suggestions for the improvement of angel investment industry governance in Shanghai,so as to promote a healthy development of this industry in Shanghai.This paper is divided into six chapters.The first chapter is the Introduction,including six parts: the background,significance and the object of this study;literature review;the main content of this paper;research methods;research tools;and the emphasis,difficulty and innovation points of this study.From the second chapter to the fifth chapter is the main part of this paper.The second chapter introduces the content of the compensation policy,and analyzes its functions and theoretically defects.The functions are divided into: Promote the TMT industry and economic development;Promote public entrepreneurship,create job opportunities;and improve the system supply quality,implement the top-level system design.This chapter uses the Theory of Government Functions to analyze whether the compensation policy act as both "referee" and "athletes" as well;It uses the Theory of Enterprise Life Cycle to analyze the validity period issue of the policy;It uses the Asymmetric Information Theory to analyze the access threshold of risk investment institutions issue;It uses the Externality Problem Theory to analyze the application scope and conditions issue of the policy from the perspective of moral hazard;It uses the “Rent-Seeking” Theory to analyze the problem of setting administration organizations and socialized professional scientific service institutions.The third chapter puts forward six detailed suggestions on the improvement of the compensation policy,these suggestions are divided into: standardize policy content,strict access threshold,and perfect compensation procedure,the first suggestion is divided into: Improve the policy validity period and improve the supervision and management of risk compensation provisions;the second suggestion is divided into: Strict venture capital institutions’ threshold and strict social science and technology professional service institutions’ threshold;the third suggestion is divided into: Perfect risk compensation application procedure and improve the risk compensation procedures.The fourth chapter uses the NGO governance-related issues to analyze the current governance of angel investment industry in Shanghai,and summarizes the experience of angel investment industry governance in the United States.The fifth chapter puts forward several governance proposals for the angel investment industry governance in Shanghai,including: Build angel platforms to cultivate entrepreneurship,support service institutions to help innovation enterprises,and make policy incentives flexible,change “after” policy to “before” policy.The sixth chapter summarizes the limitations and prospects of this study.