Research On The Model Of The Venture Capital Financing For High-tech Start-ups

Since the 1980s, high-tech start-ups play the role of engine in the promotion of economic growth. However, the financing barrier has been an important insure of restricting high-tech start-ups development and growth.It is different between the high-tech start-ups and small and medium enterprises (SME) financing barrier. SME financing barrier can be divided into start-up financing barrier and conventional financing barrier in the survival and development stage. The conventional financing barrier in the survival and development stage is caused by the high risk and disadvantages of costs and earnings of financing compared with large-scale enterprises. Besides, financial institutions lack of structure in our country is an important factor of constrainting conventional survival and development of SME financing needs.There are some special characters of High-tech start-ups. The emergence and development of high-tech start-ups is a process, accompanied by the R&D of enterprise technology, converted into production and becoming a commodity, until accepted by the market. As a result of the uncertainty of technical innovation and commercialization of high-tech products, venture capital is bound to be high-risk. This is contradict to the characteristics of general funds of commercial banks, so to solve high-tech venture capital input problems, it relies on the social capital which is able to bear the risk --- "venture capital".The main financing model is venture capital because of the high-risk nature of high-tech start-ups. As a result of the inherent constraints relationship between sources of capital and capital investment, traditional financial institutions, mainly made up of commercial banks, can not share high-risk with high-tech start-ups. So the research on financing model of high-tech start-ups today is one of the most important issues of the development of capital markets, no matter at the theoretical level or the practical level.Venture capital is an innovative of financing system, closely integrating the capital, technology and management, and reflecting the risks and benefits of unification. The venture capital investment in stages is in line with life-cycle stage of high-tech start-ups. The common mode of high-tech start-ups financing, which adapts to the capital market policies and the legal environment of our country, should be in line with its life-cycle characteristics. Research on the application of high-tech start-ups common mode of financing, and exploring the various stages of the risk characteristics of the proceeds of financing models is the goal of this thesis to achieve.