The State-owned Venture Capital Institutions, Research, Monitoring Of The Venture Firms

Since 1998, Venture Capital has got great progress both in the scale and the quality. The State-owned Venture Capital organizations invested by government and State-owned enterprises are the principal part in China. The special nature of ownership has done more great harm to supervision of VC compared with others. It has become the point of State-owned Venture Capital organizations' supervision to business.At the beginning of the article, we define the State-owned Venture Capital organization and analyze its conditions on the basis of consulting a large number of documents and investigation. Generally, we usually supervise general risks, but the State-owned Venture Capital organizations need to supervise moral hazard as the main part during capital operation.It is the focus of study that we make use of Agency theory to analyze the Moral hazard and conspiracy risk between the entrepreneur and investment administrator and put forward the method of evading risks. Then, we give a statistic analysis on the supervision from the aspect of business and investment administrator and point out the shortage of supervision.We establish the system of risk supervision controlled by State-owned Venture Capital organizations at the last chapter. We perfect the exterior environment of supervision system from the aspect of law,finance and medium. In the internal system of supervision, we establish the supervision index, system of item responsibility and financial supervision system for more effective supervision. After all, only the new ownership's establishment could evade the risk basically.