China Venture Financing Model For Innovative Research

From the history of economic development in all of countries, starting a new undertaking is a source force for promoting national economic development. With the coming of knowledge-based economy, the enterprises that start new undertakings are becoming one of the important factors which decide the development of economic competitiveness in a country or a region. It is learnt from the development of Chinese VC industry that VC doesn't work, which results in a development bottleneck, that is, the difficulty of financing still exists among the enterprises that start new undertakings in China. Therefore, it has great significance to conduct the research on how to solve the problem of financing existing among these enterprises.After analyzing the situation of financing existing in the enterprises mentioned above, the author of this thesis adopts asymmetric information theory and agency costs theory to find out the main factor which has an effect on financing of these enterprises. And, VC and these enterprises are analyzed by means of asymmetric information. Then, it is found that the main reasons which make these enterprises hard to obtain VC are the problem of moral hazard and adverse selection problem. After analyzing the characteristics of incubator function, the author of this thesis finds incubator having audit mechanism, value-added services and monitoring mechanisms which are the VC needed to address and Venture asymmetric information between functions. The author of this thesis also analyzes the characteristics and functions of incubator, the advantages and disadvantages of fusion of incubators and VC. The result of the analysis shows that there are several docking fusion points between incubator and VC, which make the two complement each other in function. As far as the fusion of incubator and VC is concerned, the advantage far outweighs the disadvantage. Therefore, an innovative model, the fusion of VC and incubator, is constructed. And this model has been put to test. On this basis, the paper proposes four hypotheses, VC, the financing of venture enterprise and incubator as the three variables constructed a conceptual model; obtained through the survey sample data analysis, structural equation modeling, found that the new model can effectively help start-ups access to financing. The result of which indicates that the model can solve the problem of financing effectively.