Study On Venture Capital's Supporting Environment Of Hefei

This article puts the supporting environment of venture capital in Anhui as the inspection object and attempts to analyze the elements of the current situation to find out obvious problems that exists in the current supporting environment for risk investment in Anhui Province, which will provide appropriate policy measures and proposals for further improvement.The paper is composed of five chapters. Chapter one is the introduction. It mainly recommends the research significance, the research purposes and the summary of this paper. Chapter two introduces venture investment development status and the characteristics, functions and capital source of venture investment; Chapter three firstly introduces the venture investment status of HeFei, then it analyses the important meaning, favorable conditions and present problems about Hefei developing venture investment; Chapter four is the part of demonstrational research. It elects some important factors of venture capital supporting environment to construct an evaluation index system. Using the Topsis method and PCA method, it evaluates the present situation of the capital supporting environment of Hefei according to the actual data. Chapter five proposes some corresponding development suggestions based on chapter four which are expected to effectively promote the capital development of Hefei as soon as possible. Chapter six gives a summary about this article.The paper main point of view is that:Venture capital aims to business of high growth, high risk, and high income. Many studies indicate that venture capital can not only promote the development of high-tech industry in a country (region), and to some extent, promote industrial upgrading and transformation. As the "Catalyst" and "Promoting agents" of new and hi-tech industries, venture capital has been a very important role in a country or an area's development. Supporting environment of venture capital, as a risk basis and the cradle of venture capital, is an organic whole formed by a number of development-related and environmental factors which are interacted together. The improvement of the supporting environment of venture capital will directly promote development of local venture capital. Hefei is one of the cities characterized by the "demonstration zone of transferring industry". The strong risk investment in Hefei will greatly promotes the development and innovation of science and technology, economic development and construction of regional financial center, consequently stimulates the economic development in Anhui Province. And it will also can facilitate industry transfer of Hefei, release the comparative advantages and promote the combination between the educational resources and capital and financial industries of Hefei. Then it can form the Naisei mechanism of Hefei which can attract new and hi-tech industries and new strategic industries. Also developing venture capital can help to establish regional innovation system, promote the ability of Self-renovation, improve the development environment of business enterprises and perfect local investment and financing services function and local financial services sector. But comparing with Beijing, Shanghai, Shenzhen and other first-tier cities in China, development of venture capital in Hefei is lagging behind. The lagging development of venture investment has largely restricted the economic development of Anhui Province. The development of risk investment largely depends on supporting environment of venture capital. Therefore, how to optimize the supporting environment of venture capital in Hefei and the development of Anhui risk investment environment is a question to be addressed.