Has The Shanghai Venture Capital Guidance Fund Played A Guiding Role?

At present,China's economy is in the new normal stage,and the driving force for innovation and entrepreneurship on the economy has become more and more important.Financial support is an indispensable link for innovation and entrepreneurship.In the venture capital market that finances innovation and entrepreneurship,there are high-risk early-stage enterprises facing “financing difficulties” and indirect financial entities “repaying loans” and direct financial entities(such as some venture capital institutions)for maximizing profits.The goal is not willing to invest more in the early start-ups,which in turn creates a market failure in the venture capital market.The establishment of the government venture capital guiding fund,through the government's investment in the form of financial funds,the introduction of social capital investment in the "market failure" investment field,thereby improving the financing dilemma of early SMEs.In recent years,the Party Central Committee has asked Shanghai to accelerate the construction of a globally influential science and technology innovation center.This also enables Shanghai to finance the small and medium-sized enterprises with scientific and technological characteristics and relevant strategic emerging industries that are in line with Shanghai's key development from the perspective of financial support.To alleviate the difficulties of “Funding Difficulties” and “funding expensive” of these enterprises.This paper briefly analyzes the development status of the main venture capital guiding funds in Shanghai and the district and the investment model of the parent fund.Based on the availability of the public data,this paper introduces the investment situation of the municipal venture capital guiding fund since its establishment.The guiding role of social capital is the key to examining whether the Shanghai Venture Capital Guidance Fund has achieved its goal.The empirical part of this paper is based on the comparison of the investment behaviors between Shanghai Venture Capital Institutions and Shanghai Venture Capital Institutions with non-government backgrounds,and guides the social capital industry from guiding funds to guide social capital.The three perspectives of investing in the city's early start-ups and guiding a larger amount of social capital to the enterprise empirically analyze the guiding role of the Shanghai Venture Capital Guidance Fund.Through empirical research,compared with the non-government background of Shanghai venture capital institutions,Shanghai Venture Capital Guidance Fund has played a guiding role in government funds in guiding social capital to the strategic emerging industries of the city,while guiding funds are guiding social capital.Investing in the city's early start-ups and guiding a larger amount of social capital has not played a significant role in guiding the company in this round and subsequent investment.In general,the guiding role of Shanghai Venture Capital Guidance Fund has not yet been fully realized.And from the shareholding investment model to improve the incentive mechanism for venture capital institutions;give play to the advantages of the government platform,ease the information asymmetry of venture capital investment;explore the use of financing guarantees and actively introduce domestic and foreign high-quality venture capital institutions and other aspects Suggestions.