Research On The Influence Of The Ownership Of Venture Capital On Investment Behavior And Investment Performance

In recent decades,China's venture capital has benefited from the rapid development of the market economy and strong support from government policies,showing a rapid growth.Today,the number of China's venture capital is only less than the United States and ranks second in the world.At the same time,foreign venture capital has also made great progress in China.Different types of venture capital firms have very different investment performance in the Chinese investment market.This article is based on 19,136 rounds of venture capital investment in 1510 entrepreneurial companies by 4510 venture capital institutions from 1989 to 2016 in China's venture capital market.We conduct a comparative analysis of the investment behavior between Chinese and foreign venture capital investment institutions from investment scale,investment industry,investment region,investment round,investment phase,exit channel,etc.We also test the impact of ownership of venture capital on investment performance.As a result,it has been found that the investment performance of foreign venture capital institutions is even lower.However,joint investment by foreign venture capital institutions and domestic venture capital institutions will increase their investment performance.In addition,the investment performance of venture capital investment depends on the characteristics of its investment behavior.Venture capital institutions tend to perform better when investing in late-stage companies and when they are diversified across industries and regions.It is worth mentioning that the larger-scale foreign venture capital institutions will have lower investment performance due to "scale uneconomicality".Compared with domestic venture capital,foreign venture capital prefers to exit via a M&A than via an IPO.On the basis of the above research,in order to better promote the development of China's venture capital and to promote the utilization of venture capital in technological innovation,economic development and other aspects,this paper puts forward the following suggestions:(1)Improve China's venture capital system and provide a fair policy environment for Chinese and foreign venture capital.(2)Improve domestic preferential taxation system for venture capital and investment,and establish a withdrawal system for multi-level capital markets.(3)When investing in less mature and unfamiliar markets,cooperation can increase the likelihood of success.