The Research On Hunan High-Tech Venture Capital Impact To Financing Of CARRIE Heavy Industry Machinery

In the global competition, the technology-based SMEs have become a important strength for economic development structure promotion and worldwide competition. These years, the technology-based SMEs in our country have obtained remarkable achievements and become an important force in the country's national econimic development. However, finacial issues impede its further development. The solutions to the financial problems of SMEs is critical for the survival and development of enterprises, and growth of our high-tech industry as well.The technology-based SMEs are at the foundation stage or the growth stage generally. In this time, the enterprise pushes the high-tech products or the technologies to the market, through a series of marketing strategy for expansion scale and the market share, finally industrialization. The growth of technology-based SMEs rely heavily on capital, especially at growth time. The profit obtained in market are far from the capital demond for expand production and sales orgnisation. Therefore the SMEs have very urgent requirement for fund, but because of the growth stage, the real small asset scale, plus that the management achievement is not ideal, thus the financing channel is quite limited. All of these have restricted the SMEs'development greatly, and amount of enterprises even goes out of business for fund shortage.Venture capital investment which is called start-up financing, are targeted mainly at technology-based SMEs. But because of the high investment threshold and limited capacity, as the matter stands, bank financing are still the first choice of SMEs. With a view of long-term goal, to fundamentally solve the financial difficulties, the SMEs should set up a system which is depend on multi-venture capital and upgraded economic and legal system, with conditions of policy support, good intermediary services system and clear exit channels. This is the very key to the question.This article is based on the venture capital investment from Hunan High-Tech Venture Capital Ltd., the largest start-up investment firm in Hunan, to technology-based medium and small enterprise—Changsha CARRIE Heavy Industry Co.,Ltd. with related theory of investment and financing, focused on analysis of venture capital financing influence on Changsha CARRIE Heavy Industry Co.,Ltd, by comparing its financing channels and methods before and after investment of High-Tech Venture company. With this case analysis, it seemed that venture capital financing is a efficient way to solve financing difficulties of the technology-based SMEs. Meanwhile, the article also gives advices on how to meet the financing demand of SMEs effectively.