The Withdrawal Of Venture Capital And Its Practical Study In China

The exit of venture capital is the process to generate revenue, and occupies animportant position in the venture capital operation system. Risk capital exiting should bewith the most benefits in the capital market environment by running the best timing. Indeveloped countries, especially in some of the more mature venture capital developmentcountries, its exit channels must be diversified, which guarantees the flow of venturecapital, and thus play a role in promoting the development of venture capital. At present,China’s venture capital development stays at a preliminary stage with relatively slowdevelopment. However, the lack of venture capital exit mechanism is the important oneamong all other reasons. As soon as possible to establish the venture capital exitmechanism is not only the premise of the development of China’s venture capital industry,but will further accelerate the upgrade of China’s industrial structure and change the modeof economic development as well. Therefore, the researches on China’s venture capital exithave practical significance.Firstly, the paper introduced the definition of venture capital and venture capitaloperations, and describes the status quo of China’s venture capital exit. Secondly, wedescribed followed venture capital exit (IPO, equity transfer, bankruptcy and liquidation),focused on the own characteristics, and give the exit of venture capital to produce differenteffects. Thirdly, according to the exit of venture capital, we did a specific analysis of theobstacles encountered by the IPO, equity transfer, and bankruptcy in China. Then, throughthe elaborate of internal and external factors affecting the exit of venture capital we give afully grasp the choice of China’s venture capital exit. Fourthly, from the perspective ofcases, we came up with a more vivid and comprehensive grasp of the venture capital exitroad. At last, after a more comprehensive understanding above, we gave some suggestionsto improve China’s venture capital exit and hope to be useful for practical operation in exitof the venture capital.