China's Venture Capital Exit Mechanism

Venture Capital is the accelerator of modern hi-tech industry and does great effect to modern economy. It is honored to be the engine of economy development. One of main reasons that make Venture Capital in china develop slowly is the lack of effective exit mechanism. By comparing the exit modes of domestic and abroad, we try to find out the problem and bring out to establish the venture investment exit mode, which can meet our demands.This paper consists of three parts. In part one, notations and theories of Venture Capital theory are introduced and state of the art of some developed countries are described. Also, venture investment exit modes of them are studied and used as important references to establish our mode. In part two, based on the studies of state of the art of our country, we propose that three factors effect the perfection of our exit mechanism of venture investment, which means capital market, legal system and venture capitalists market. In part three, strategies to construct effective exit mechanism of Venture Capital in china are proposed.