Institutional Research Of Venture Capital

In recent thirty years, the rapid development of economy in the world proofs that venture investment is the catalyzer of new economy and the powerful engine of industry structure. And most of the countries have realized the importance of developing the venture investment. Venture investment is one of institutional innovation on the support of entrepreneurial investment, which includes financial innovation, institutional innovation and managerial innovation. The development of venture investment requires institutional innovation on the institutional level, and it could show the general rule about the development of venture investment effectively. The research on institution becomes a common focus of scholars, officers and practical persons. So the topic of the dissertation is to explore the institutional research of venture investment.We work on the institutional research by one main route and two assistant routes, and the main one is institutional route and the two assistant routes are respectively technical route and finance political economic route. From international level, we compare the institutional differences between China and America or other developed countries and obtain useful experience and implication. From system level, we analyze the effect of venture investment industry on national economy. From organization level, we study institutional arrangement and the relations between venture investment firm, entrepreneurial firm, agency institution and government. From individual level, we explore institutional design and relations on characters and performances between investor and venture capitalist, venture capitalist and venture enterpriser.This dissertation contains eight sections, and the kernel sections could be summarized as the following four aspects:Firstly, it argues the significance of the research and identifies the connotation. Based on the relations between institution and economic growth, venture investment and economic development, it derives that institution is the most important factor which impacts venture investment. Combining macro level, theory level and present status of China, it discusses theoretic and practical significance of institutional research on venture investment in China. From the insight of language philosophy, it explores the connotation of entrepreneurship and venture investment respectively, and analyzes the arguments of boundary and conception from several aspects and concepts, which are focused by the society. It determine the direction of the research from many dimensions and insights, and provide a so called"one main and two assistant"study thought and"human anatomy picture"framework.Secondly, it mainly reviews the literatures and basic theory, and lay a good foundation for the following chapters. The literatures about the institution of venture capital are summarized from six sides; We analyze the research method of neoinstitutional economics as a leading economics, and discusses several groups of concept such as the institution, the assumption of human behavior, institutional environment and institutional arrangements, institutional demand and institutional supply, institutional equilibrium and institutional non-equilibrium. Finally, property rights theory, transaction cost theory, contract theory and principal-agent theory, and their relationship with the venture capital are selected and introduced respectively, and they are also the core theory of the neoinstitutional economics and the important tool of analysis; We explore the movement of venture capital from the perspective of Marxist political economy, and obtain the formula for the movement of venture capital.Thirdly, this section is the main part of the dissertation. It analyzes the institution in four taches of the venture capital cycle such as"financing","investment","management","exit"from the perspective on the structure of governance and the formation of organization; The brief history for development and process for operation of venture capital are comprehensively introduced; We compare three forms of organization of venture capital fund and also predict the form of venture capital in China; The corresponding suggestions about Chinese financing institution are provided, and the relationship between Chinese government-funded and the development of venture capital is tested by empirical analysis; We design a set of incentive system (multi-stage investment, revenue and compensation mechanism) and constraint system(portfolio allocation, joint investment and monitoring management), and compare three common investment tools; Micro-model of the decision that venture capitalist monitors the optimal level of internal control is derived, and it is believed that a mode from the combination between the monitor from government and industry should be set up in Chinese external monitor; By comparing three ways of exit, we propose some important recommendations such as the building of exit system.Fourthly, this section is about conclusion and empirical research on the support system for venture capital from the government. Theory and practice at home and abroad show that development of venture capital is closely related with government guidance and support; We summarize "Top Ten" policy of the government-backed venture capital and proposed that the guide for the fund should take a single mode, and it more conducive on professional management. According to the national present conditions in China, it is better to take equity mode at the present stage, and we can choose one mode to match in three auxiliary modes of operation by combining the actual situation, and then consider financing guarantees as the primary mode when conditions are ripe; The empirical tests prove that the change of venture investment and policies of government support is correlative; Finally, several policy proposals about government support for the venture capital are put forward.