The Research On Exiting Mechanism Of China’s Venture Capital

Risk capital is put into the high risk of the enterprise which is a kind of equitycapital, its fundamental purpose is in order to get high investment return. Any forms ofventure capital will consider exit risk enterprise and take back investment and gains,then conduct a new plan after a certain period holding venture enterpriseequity.Therefore, risk investment need reliable exit mechanism to provide security asan high-risk, high return activity. Perfect venture capital withdrawal mechanism is thekey that risk investment income can be realized. The research of venture capitalwithdrawal mechanism will help to develop china risk capital business with the vigorousdevelopment of high and new technology industries.The article base on foreign venture capital withdrawal mechanism theory andpractice research in view of the domestic venture capital withdrawal mechanism of thepresent situation of and problems,the article finally put forward reasonable proposals toimprove venture capital withdrawal mechanism through contrasting to data of foreignventure capital withdrawal mechanism and learning lessons.The article includes five parts: introduction,which describe the research backgroundand significance of the article and summarize the domestic and foreign academicresearch achievement about the venture capital exit manner and related mechanism.Thefirst chapter mainly introduce venture investment theory and point out venture capitalwithdrawal mechanism concepts.Venture investment mechanism includes four mainpatterns：IPO,merger,sharing repurchase,liquidation.IPO and selling are two commonlyused methods whether in Europe or in the United States. What’s more, the article alsosimply introduce safeguard mechanism about venture capital withdrawal mechanism.Thesecond chapter describe present development status about China venture capitalwithdrawal mechanism,the existing problems and causes of the problems.Ventureinvestment starts late in our country,which develops so slowly so far,only further studythe current situation of the development of our country can better determine suitable forChina withdrawal mechanism.The third chapter reaches enlightenment of venture capitalwithdrawal mechanism through simply introducing foreign venture capital withdrawalmechanism characteristics and relative comparison,then studying policy support of foreign government venture capital withdrawal mechanism, which establish a goodtheoretical basis to improve China venture capital withdrawal mechanism.The fourthchapter reaches venture capital withdrawal patterns and actively develops OTC countermarket and regional equity transfer market and so on through learning lessons of foreignventure capital withdrawal mechanism and comparing domestic present developmentsituation.Then we need to speed up the construction of the system about the venturecapital withdraw mechanism,including the government regulation system,legal supportsystem,social intermediary service system,human capital system, and graduallydeveloping and perfecting China GEM to perfect venture capital withdrawal mechanismof our country and promote the healthy development of the venture capital business.