Venture Capital Gem Ipo Research

Venture Capital is honored as a booster of high-tech industry, the healthy development of Venture Capital is vital for promoting the development of high-tech industry and speeding up the upgrading of industrial structure. IPO is the best exit channel for Venture Capital, so Venture Capitalists will certainly deeply involved in the process of Venture Companies'IPO, including the choice of IPO time,Broker and underwriting methods etc, thus will significantly affect Venture Companies'IPO Process.Academics have different views of the role Venture Capital played in the process of Venture Companies'IPO. Foreign scholars have conducted empirical studies on different Countries'stock markets, they found that the role Venture Capital played in the process of Venture Companies'IPO varied in different Capital Markets. According to different empirical statistics, foreign scholars proposed three theories:"certification hypothesis","monitoring/screening effect"and"adverse selection/grandstanding hypothesis".This article have selected 153 Shenzhen Growth Enterprice Market listed companies as study sample, we divided the sample into 4 groups: Venture Capital backed firms and Non Venture Capital backed firms, high-reputation Venture Capital backed firms and low-reputation Venture Capital backed firms. By comparing the four groups'performance before IPO, IPO performance and performance trends around IPO, we want to verify whether foreign different models are valid for Shenzhen Growth Enterprise Market.This article is structured as follows:Chapter 1, introduction: briefly described this article's background, purpose, research method, structural arrangement, innovation and inadequacy.Chapter 2, theory review: in sections one and two we explained the related concepts of Venture Capital and Growth Enterprise Market; in section three we reviewed domestic and foreign scholars'researchs about Venture Capital's impact on IPO.Chapter 3, empirical research: we did empirical analysis on IPO data of Growth Enterprise Market, to study Venture Capital's impact on Growth Enterprise Market's IPO.Chapter 4, conclusions and proposals: according to the above study, draw related conclusions and gave proposals. We found that:â‘ Before listed on the GEM, most high-tech enterprises have introduced Venture Capital, Venture Capital has become an very important financing channel for high-tech enterprises;â‘¡Overall, Venture Capital in China haven't played"monitoring/screening effect"well, and they have played part of"certification function";â‘¢Inside the Venture Capital industry, high-reputation Venture Capital have played"certification function"and"monitoring/screening effect"well, high-reputation Venture Capital can exert positive impact to Venture Companies'IPO.In the end, we made sensible suggestions to Venture Capital, high-tech enterprises and relevant government departments, including encourage Venture Capital taking professional road and strengthening management after investment; encourage high-tech small and medium enterprises financing Venture Capital; promote the construction of the OTC Market, etc.