Research On The Impact Of Venture Investment Characteristics On The Growth Of Enterprises

In October 2009,the Growth Enterprise Market in China landed on the capital market for the first time.It is different from the main board market.It provides a financing platform for those companies who are temporarily unable to meet the requirements of the listing conditions of the main board.The major enterprises on the GEM market are entrepreneurial,small and medium-sized,high-tech enterprises.GEM plays an important irreplaceable role on the capital market.By the end of December 31,2016,there are 569 companies have been listed on the GEM successfully.Investors pay more attention on the growth of these enterprises.In September 2016,the government issued the policy file which is about venture capital.It stresses on the importance of mass entrepreneurship and innovation.In addition,it encourages everyone to enter the field of venture capital actively.Venture Capital innovates the system and mechanism of investment and financing.It alleviates the financing difficulties of start-up enterprises effectively and innovates investment and financing modes by combining start-ups with innovative elements such as capital and technology.In recent years,venture capital in China develops very fast.It not only broadens the mode of investment and financing of enterprises,but stimulates entrepreneurial innovation and promotes employment growth as well.The relationship between venture capital and GEM-listed companies is very close.70 percent of listed companies on GEM have the support of venture capital agencies.These agencies can help enterprises grow up,so they are called "The engine of economic growth".This paper mainly discusses the impact of venture capital on the growth of GEM companies.The research content is mainly divided into three parts.First of all,this paper analyzes what aspects of the growth of enterprises the venture capital mainly affect and how venture capital affect the growth of enterprises.Then suggest hypotheses from four venture capital institutions traits sides:reputation,shareholding ratio,nature and joint venture.This paper assumes that reputation of venture capital firms,shareholding ratio,nature of venture capital and co-investment are positively related to the growth of GEM companies.In terms of growth index of start-up enterprises,this paper constructs the growth evaluation system from four aspects,which are cost profitability,capital operation and expansion ability,business growth potential and capital expansion,and human capital strength.Finally,come to conclusion through some empirical test method such as the descriptive statistical analysis,correlation test and multiple regression analysis.The research shows that the reputation of venture capital and the proportion of venture capital to shareholding have a certain positive impact on the growth of the company.In terms of the nature of venture capital,private venture capital plays a most significant positive role in promoting the growth of the enterprise.Joint investment has a positive effect on the growth of the enterprise.Based on this conclusion,this paper puts forward policy suggestions on venture capital and GEM from three aspects:company,venture capital and government.The paper broadens the research object.At the same time,in terms of growth index,this paper considers the factors such as profitability of capital,ability of capital operation and expansion,growth potential of enterprise,capital expansion and human capital strength.It can help securities market stakeholders to form a rational understanding of venture capital,and provide reference for the government when making decisions.