Study On The Mechanism For The Exit Of State Sponsored Venture Capital Funds

As many years of rapid development in China,the venture capital industry has gradually become an important part of China’s capital market.Nowadays,more state-sponsored venture capital funds have gradually become the main force of venture capital in China.State sponsored venture capital fund has not only become an important tool of national industrial policy,but also assumed the responsibility of maintaining and increasing the value of state-owned capital.At present,the state-sponsored venture capital funds in China have developed rapidly in terms of the number of funds,the scale of funds under management,the type of investment,while many problems have also arisen.One of the problems related to the exit decision-making is particularly prominent,which restricts the healthy development of China’s venture capital fund industry.Therefore,it is of great significance to study the exit mechanism of state-sponsored venture capital funds.This thesis first uses the principal component analysis method to sort out the main factors that affect the exit mode and timing of state-sponsored venture capital funds,and then uses the fuzzy optimization evaluation model to solve the problem of choosing the exit mode and timing of state-sponsored venture capital funds,and converts the descriptive and qualitative evaluation of the exit timing of state-sponsored venture capital funds into quantitative evaluation and establishes an evaluation system,so as to solve the problem that it is difficult to quantify and evaluate when deciding the exit mode and timing of the fund.According the study,the main factors affecting the exit time of state-sponsored venture capital funds,the satisfaction scores of "secondary capital market conditions","operating performance of invested enterprises","single investment income requirements",and "fund investment period" were scored around 2,indicating that priority should be given to the decision of exit time of state-sponsored venture capital funds.That is,in the most ideal conditions of the above four factors at the same time,it is the best exit time for the exit.The example shows that:on the one hand,the state-sponsored venture capital funds have a low risk preference when making the exit decisions,and the risk margin is small when evaluating the "secondary capital market situation" and "operating performance of the invested enterprises".On the other hand,the flexibility of the management of state-sponsored venture capital funds is insufficient.When evaluating the factors of "single income" and "fund term",the fund has limited adjustable space.In view of the above problems,it is suggested that 1)the exit assessment policy of state-sponsored venture capital funds should appropriately improve the profit requirements,avoid the state-sponsored venture capital fund managers from giving up a part of the profit due to excessive risk margin,which is beneficial to the preservation of state capital.2)The state-owned fund shall be subject to the agreement of appropriate buffer period to avoid the manager from sacrificing part of the state-sponsored capital profits due to the time limit.