Development Trend Of Venture Capital Research

Every country developes the venture capital because of its strategic demand of supporting to start a business and developing high technique industry. Our country is also developing the venture capital strongly, but the venture capital has been developing very slow for many years. It can't meet the demand of our business-starting enterprises, and its development condition gets behind with the developed country in the world. We strengthen the research of the development trends of the venture capital because it is advantageous for our government to follow the trends to promote the venture capital's development as soon as possible. This article takes four trends which have come out in the performance of the world's venture capital development process, make analysis deeply ,and then draws out some guiding conclusions to our country's venture capital development mode.Part I Basic concepts of venture capital. Through defining venture and analyzing the source of profit, we draw that venture capital is a kind of capital which takes supporting to start a business as working talent, and takes seeking a high sum of business-starting profit as working purpose. The investment of venture capital is the venture capital's using.Part II The trends of the venture capital's development. The venture capital's development is the venture capital's creation and growth with the influence of its inner and exterior contradictions. The development trends are formed from the common function between the inner and exterior contradictions.That venture capital's capital inner contradictions' development is influenced by its exterior contradictions makes venture capital appear a periodic development trend. This periodic circle is pushed by the investment profit margin, and enlarged by the starting enterprise's internal fixed assets investment, and realized by the venture investment policy variety and financial system etc. external factors.Competition and cooperation among venture capitals make the trend of massing development in the same district. This trend reflects that the venture capitals concentrate in the same district because of their chasing the venture profits. However, this kind of competition is peaceful, and is an independent choice process under a social self-moving order.There are two reasons for this new kind of competition: first, venture capitals mass in a narrow and small social space, and the bad environmental risk urges them to solidify more, even adopt consociation investment to share the indeterminations and high risks which come from developping;second, there are natural factors to repress the centralization of capital in venture capital's inside. Every capital makes strong technique barracks for the other capital's invading because they have faced certain and specialized technique enterprise for a long time.The competition and cooperation between the venture capital and the national monopolization capital makes that the venture capital's development depends on the government's support. This trend expresses that the national monopolization capital has the tendency to support private venture capital's movement in order to flourish capitalism national machine and itself s benefit. The supportting ways include that the national monopolization capital participates the venture investment directly, and the indirect meanses such as industry policy and laws, etc. Thatthe national monopolization capital supports private venture capital is because of the demand of overcoming the venture capital market's disorder, and is also because of the strategic demand of supporting national monopolization capital—national defense machine. More important is that the government's supporting the venture investment pushes the research and development, to some extent, and contributes to technique's inovation speed and venture enterprise's competition, also mollifies the monopolization capitalism economy's stagnation trend. So it also reflects some new capitalism's changes.The competition and cooperation among different nation's venture capitals makes the venture capital's internationalization development trend. This trend is pushed by different country's venture profit margin. It reflects the competition relation among different country's venture capitals. For the competition among the developed cuntry's venture capital, except for fighting for venture profits, it also has more political factors. For the competition between the developed cuntry's venture capital and the developing cuntry's venture capital, we emphasize that this kind of competition's result has double effects.On one hand, it means the strategic intention of the developped country's misappropriating the developing country's venture profits and controlling the developing countrys' high and new technique industry;on the other hand, this kind of competition may also urge the developing countries to grow their industry hard, and push the developing country's high and new technique industry's development.Part III The apocalypse of the development trends to our country's venture capital's development. Through analyzing these developing trends and according to our country's present condition of the venture capital's development, we find that our country should not completely adopt the market predominance type to develop the venture capital, but should build up the venture capital development mode of "government as leader, market as main body" .That is, first, the government must change the way to support the venture investment by enhancing the indirect supporting and weakening the direct participating;second, the government must strengthen the macro adjustment to the venture capital development, and prevent from the decline becourse of venture capital's periodic development;third, we must obey the trend of venture capital's massing development in the same district, and strengthen to develop the hi-tech districts;fourth, we must actively deal with the disadvantageous influence of the foreign venture investment to our country economic development,and in the meantime, create conditions actively to encourage our country's venture capital to go out.