The Study On Guiding Effects Of Government Venture Capital Guiding Funds

In recent years,the intervention of government for venture capital market increased significantly.The main way is to encourage local government and relevant department to set up Government Venture Capital Guiding Funds(GVCGFs),and then leverage and amplify fiscal funds,guiding social funds into the venture capital field.How about the effects policy of GVCGFs in China in the end?Whether to play the guiding role of social funds?According to the foreign government venture experience,the policy effects of government venture not only embodied in the attraction of society funds,promoting the development of venture capital better and faster,but also represented the guidance of social capital into the enterprise.In order to fully assess the effects policy of GVCGFs in China,this article empirically tests the effects of GVCGFs policy from both the venture capital market and entrepreneurial ventures.In addition,due to the venture capital market development level and innovation ability level have an obvious difference among different regions in our country,the eastern region is better than the middle and western region,this situation will affect the accuracy of empirical results.Therefore,we will divide the region from two aspects of the development of venture capital market and innovation capability,tests the effects of GVCGFs policy,respectively.The main work and empirical results of this paper are:(1)Entrepreneurial level.In contrast to the enterprise which invested by private funds,the hybrid funds invest with private funds will significantly improve the first financing of enterprise,the subsequent financing of enterprises,the total corporate fundraising,the first financing from private venture capital,the subsequent financing from private venture capital,the total corporate fundraising from private venture capital,the amount of subsequent private venture capital firm,the average investment of subsequent private venture capital firm.But the hybrid funds invest by itself will not significantly affect the corporate financing.Using the instrumental variable method to eliminate the endogenous,we found that the hybrid funds invest with private funds will not affect the corporate financing.Even taking the way of independent investment could reduce the number of subsequent private venture capital firm.(2)Venture capital market level.Using a fixed effect model we found that the investment of hybrid funds will significantly improve the amount of financed enterprises,the amount of private venture capital firm,the amount of financed enterprises from private venture capital firm,the amount of private venture capital firm.But no significant effect on the total investment,the average investment of venture capital firm,the total private investment,the average investment of private venture capital firm.Using GMM model we found the results are similar to the above results,the only difference is that no significantly effects on the amount of enterprises from GVCGFs.(3)Region differences level.In the well-developed regions of venture capital,hybrid funds will significantly improve the first financing of enterprise,the subsequent financing of enterprises,the total corporate fundraising,the amount of subsequent venture capital firm and the average investment of subsequent venture capital institution contrast to the enterprise which invested by private funds.In the less-developed regions of venture capital,the result is that there may be no relationship between the enterprise of hybrid funds invested and the enterprise of private funds invested.Similarly,in the well-developed regions of innovation ability,hybrid funds will significantly improve the subsequent financing of enterprises,the total corporate fundraising,the amount of subsequent venture capital firm and the average investment of subsequent venture capital firm contrast to the enterprise which invested by private funds,will improve the first financing of enterprise but not significant.In the less-developed regions of venture capital,the result is that there may be no relationship between the enterprise of hybrid funds invested and the enterprise of private funds invested.The empirical results show that:First of all,although the enterprise which invested by hybrid fund has a better performance and attract more social capital,it does not mean that GVCGFs could play a role in certificating the enterprise.Most of the enterprise has a better financing performance also seem to have good investment value and the characteristics of attracting venture capital firms.Indeed,if the hybrid funds take the way of independent investment,GVCGFs will crow out social funds and decrease the amount of subsequent venture capital firm.Secondly,GVCGFs can not directly contribute to the upgrading of the total investment of venture capital market.The increasing number of enterprises is just the number of GVCGFs invested.Although GVCGFs can attract investment of private venture capital to some degree,the amount of enterprises and the total investment remains unchanged actually.The only explanation for this result is more syndication to appear in the venture capital market.Thirdly,in the well-developed provinces of venture capital or the well-developed provinces of innovation ability,GVCGFs could give full play to the role of guiding effects.In the less-developed provinces of venture capital or the less-developed provinces of innovation ability,GVCGFs could not play the guiding role of social funds.