The Research On Exiting Mechanism Of China's Venture Capital

Venture capital is an investment behavior in investing unlisted companies and emerging entrepreneurs in the management, and its fundamental purpose is to get high return on investment. From the mid-eighties of last century, the introduction of venture capital in China, after 20 years of development, China's venture capital industry has made great development and begun to take shape, but it still did not play its due role. The reasons are many:lack of proper exit mechanism for venture capital is one important aspect. Venture Capital exit is the important and final part of process of venture capital operation; is the exit to achieve high returns, the only channel for the purpose of investment. Venture Capital exit is not only the end of venture capital, but also the starting point for a new round of venture capital. Only the successful exit of venture capital can recover the original investment, look for new investment opportunities, and start a new round of venture capital, then start a new cycle. The perfect exit mechanism for venture capital is an important guarantee for a virtuous cycle of venture capita, with a sound exit mechanism for venture capital is crucial for the venture capital system of a country.This paper first describes the purpose and significance of the research on exiting mechanism for venture capital, introduces the current research about domestic and foreign venture capital exit mechanism; then introduces the concept, characteristics and general operational process of venture capital, emphasizing the importance of venture capital exit; second discusses the exit mechanism of venture investment in four major ways (initial public offerings, mergers and acquisitions, share repurchase, liquidation), and compares their own merits and performance, then analyzes the exit ways and exit performance of China's venture capital, and the contribution of the Growth Enterprise Market to venture capital exit, thus indicates that it needs to establish a multi-channel, high-performance exit mechanism for venture capital; Followed by analysis of the venture capital exit environment, both inside and outside exit environment of Venture Capital with problems existed and obstacles encountered in the future; As the development of foreign venture capital is far superior to our country, the next by comparing the United States, Germany and India similarities and differences between the exit mechanism of venture investment explains its reference to China; Finally, based on the above, for building a sound investment exit mechanism in China, this paper improves the relevant laws and regulations, the implementation of multi-channel market mechanism of venture capital, and steadily improves over the counter market and actively improves the property rights trading market, establishes and improves the liquidation channels, nurtures and develops the venture capital intermediary organizations and trains outstanding personnel and other venture capital proposals, establishes a multi-level, multi-channel exit mechanism for China's venture capital.