An Analysis Of Venture Capital Promoting Chinese Film Industry

In the United States and other Western countries,venture capital as a new and important investment and financing method in promoting technological innovation in the development process,plays an important role.Venture capital existed in China in the year of 1985.With a history of thirty years development,the paper will discuss the role venture capital played in Chinese film industry in two aspects: theoretical study and empirical study.However,due to the unique features of film industry,Chinese film industry is facing serious financial problems,which limits its own further development.For example,the funding is small in scale,the investment structure is irrational,the film industry are financing difficulties,creative resources can not be combined with other aspects of capital.All these issues reflects a vicious circle in start-up film companies.After studying other experts` research,we will easily find out that experts suggests to use venture capital to stimulate the film industry,since venture capital can not only bring financing support,but also participate in the management,evaluation,screening,which do activate the film industry from inside to outside.The paper will state the implication and feature of Venture Capital and Film Industry and figure out how they are performing now,while clearing the fact of VC`s function in Supporting,Risk Sharing and Element Integrating.In the empirical part,the paper will discuss the relation of VC amount and film industry annual value,and will state that film industry can`t develop without large amount of VC.When we realize the fact that VC have not fully functioned in film industry for some difficulties,we should find out what is obstructive factor of venture capital intervening in the industry,and also give suggestions of how we can encourage film venture capital.The paper discusses VC in film industry,which is a newly and high-speed developed industry.Though some experts have done research in this field,people prefer to do theoretical research.The paper will combine theoretical study with empirical study as an innovation point.With the development of film industry,film fund,bank loan and strategic investment is what film company choose to get capital support,but they always ignore the role that VC plays in the start-up film companies.The paper will emphasize the effects that VC brings into a film company.In the end,the paper will discuss why VC is facing difficulties in film industry and give suggestions of how we can encourage film venture capital in three aspects: Government support,Internal construction and Third-party support.