Research On The Effect Of Introducing Foreign Capital VC Into High-tech Enterprises

With the continuous improvement of China’s economic level,high-tech enterprises have become an important subject of technological innovation in China at this stage.How to promote high-tech small and medium-sized enterprises to strengthen innovation and establish an innovative leading enterprise with outstanding technical ability is of great significance to China’s economic structure adjustment and industrial structure upgrading.Because high-tech small and medium-sized enterprises have large financing demand,insufficient ability to resist risks,long technology life cycle and unclear market prospect,they often encounter the problem of financing difficulty.Compared with other traditional investment and financing methods,the introduced venture capital has certain advantages in value-added services,capital liquidity and terms arrangement.At the same time,it is also the main investment source of China’s high-tech small and medium-sized enterprises.Venture capital is the product of the development of financial market to a certain stage.It has been gradually introduced into China since the 1980 s.In recent years,as an important part of China’s investment market,venture capital has played a vital role in promoting the development and growth of high-tech enterprises.On the one hand,the construction of China’s innovative country and the development of independent innovation are inseparable from the innovation subject-high-tech enterprises.On the other hand,the development of high-tech enterprises only depends on traditional financing methods is not feasible,and the introduction of venture capital is essential.However,due to the long history and large proportion of foreign venture capital in China,it plays an important role.Therefore,this thesis introduces a specific case to study the effect of high-tech enterprises introducing foreign venture capital on China’s economic development.In this thesis,the research methods such as literature research method,event research method and case study method are adopted.After large-scale reading of relevant articles at home and abroad,and searching for relevant financial data and industry conditions of the case,the economic effects of the introduction of IDG capital on Hengxuan technology are analyzed and studied from the aspects of enterprise financial performance and R & D achievements.The results show that the impact of the introduction of IDG capital on Hengxuan technology in high-tech enterprises includes: IDG has the certification function of Hengxuan technology;IDG reduced the financing constraints of Hengxuan technology;IDG is stationed in the board of directors of Hengxuan technology to supervise and manage it;Other valueadded services provided by IDG to Hengxuan technology,such as talent resource introduction and refinancing.Moreover,compared with domestic venture capital institutions,foreign venture capital has stronger anti risk ability,higher reputation and more mature governance mechanism.Therefore,the analysis results show that the overall comprehensive ability of Hengxuan technology introducing foreign VC is better than Shijia photon introducing domestic VC,and the development of Hengxuan technology is inseparable from the influence of foreign IDG capital from capital,supervision,social relations and so on.In short,compared with domestic venture capital,foreign venture capital has a more reasonable cultivation of post investment companies,and has a relatively sound investment value-added business management system and enterprise governance structure,which also makes the financial performance,R&D achievements and industry status of the invested enterprises more prominent than other high-tech enterprises without foreign venture capital background.For the research results,the following enlightenment is obtained: first,the growth of China’s high-tech companies is inseparable from the support of venture capital.However,since China’s development in the field of venture capital is not very mature,we must refer to the relatively mature overseas investment practice and successful management experience,make a specific analysis according to China’s actual situation and the development of venture capital,and actively explore effective countermeasures conducive to the development of China’s venture capital,which is of great significance to the development of China’s venture capital.Second,we have improved the market supervision system of venture capital and appropriately liberalized the investment market.First of all,we should optimize the construction of science and innovation board system.Secondly,for high-tech small and medium-sized enterprises,we should reasonably reduce the listing standards of enterprises,build green issuance channels,optimize the investment environment,and better give full play to the important role of VC institutions in promoting the high-quality growth of the real economy.Third,optimize the utilization efficiency of foreign VC,which requires the construction of supporting system in the domestic market.With the advantages of resources and experience,foreign VC can better promote the financing and listing of Chinese enterprises overseas,which shows that the government should continue to create an open foreign investment environment,speed up the construction of a new open economic system,and create a more open,fair and transparent business environment.