analysis of the operation of venture capital finance theory and practice（分析风险资本融资理论和实践的操作）.doc

Analysis of the operation of venture capital finance theory and practice First, an overview of venture capital In recent years, with the rapid development of high-tech countries in the world and the competition between regions into high-tech-driven competition in comprehensive national strength. The development of high-tech industry in deciding a country’s international competitive strength of the key factors. Thus, closely related with the high-tech venture capital is also increasingly subject to national attention. (A) the definition of venture capital Venture capital refers to the risk of failure to invest in deposits of high-tech projects and product development, with a view to promoting the commercialization of new technologies as soon as the results obtained in the course of a unique capital gains on investment activities as venture capital funds is a invest in risky, high-tech start-ups to seek a special high-yield commercial activities and it has the following four characteristics: 1, from venture capitalists to make venture capital cycle. 2, the equity investment, and actively participate in investment business, not only to invest and also offers consulting to help and assist enterprises in management. 3, it is a long-term, high-risk, high return investments, and stocks, funds, treasury bonds and other investment compared to the risk of long-term rate of return on investment can reach 20%, but this high rate of return is based on based on high-risk, and therefore must have the ability to manage risk. 4, its purpose is the pursuit of equity investment in early recovery, rather than control the ownership of investment companies for the purpose. 5, not just a venture capital investment and financing system, but also a fund-raising finance through, business management, technology and product development, testing and many other factors in an integrated economic activity. (B) the constituent elements of venture capital