The Analysis Of Government Role Orientation In Venture Capital

It has been more than 60 years from the birth of Capital Venture. As one kind of important way of investment, it plays an important role in adjust, optimize and upgrade industrial structure,improve the overall economic efficiency, increase the competitive strength of country in the world. Therefore, Governments have attached much importance to the development of the country's venture capital industry.According to the influence that the government and market exert during the development of venture capital, the developing mode of venture capital can be divided into two types: government predomination mode and market predomination mode. China's venture capital industry started rather late and has always taken a government predomination mode, although in recent years China's venture capital industry has made a very good score but the gap with developed countries is still great. What the future model of development, as well as how to improve China's venture investment in the development of macroeconomic environment in order to better promote the development of risk investment, it is a problem we should face with.Firstly, this paper introduces the definition of investment risk's characteristics and the reason why government take part in the venture capital industry from the economics perspective. Secondly, I made a description about courntries with different types of venture capital model, then summed up the experiences and lessons in development of venture capital industry in these countries, reviewing China's venture capital industry, analysising of our capital venture's status, proposing the reasons that obstacle the development of venture capital industry such as: imperfect information flow mechanism, with the imbalance between foreign investors, venture capital exit path obstacles, building laws and regulations exist lag problem and so on. Finally, we should take the government predomination mode at the early stage of the development of venture capital industry, at this stage our government should to do something to help capital ventrue gradually transform into market predomination mode.It including: gradually reduce the proportion of government funding and broaden the sources of other funds In the supply of investment funds; the introduction of domestic GEM; three board market with the development of regional property rights trading market; give full play to the government tax incentives and financial support for policy, set up Government to foster a sound mechanism; strengthen the venture capital and the introduction of talents, the talent to create a good environment;to actively set up a pioneering Chinese Venture Capital Association, and strive to cultivate intermediary service system.Government's action play an important role in venture capital industry. This article aims to study what the government should do to improve China's venture capital market.