Venture Capital: Financing Channels To Be Dredged

At the International Forum on venture capital in 2002, which ended in September 8th, experts, investors, etc., besides calling for the introduction of relevant laws on venture capital investment as soon as possible, also believed that the financing channels for venture capital should be dredged as soon as possible.

How to solve this problem and really make the small and medium sized enterprises grow up as soon as possible?

Shi Dinghuan, a member of the Party branch of the Ministry of science and technology, said that since April 2001, the Ministry of science and technology has organized venture capital associations in Beijing, Shanghai and Shenzhen, and has conducted a detailed investigation for 8 months.

The survey shows that at present, the number of venture capital institutions in China has reached more than 250, and the operation mechanism of venture capital with the government, venture enterprises, investment institutions and intermediary service agencies as the main body has been initially established and operated.

The more than 190 major venture capital institutions invested about 11000000000 yuan in support of more than 1500 technological innovation enterprises.

Among them, investment in the relatively early development stage of start-up, start-up and growth of enterprises accounted for 70% of total venture capital investment, while investment in high-tech enterprises and high-tech projects accounted for more than 90% of total investment.

The above figures show that venture capital is gradually becoming an indispensable source of investment for the development of high-tech industrialization in China.

Shi Dinghuan said that because of the small scale of venture capital institutions in China, the average investment of each institution is about 180 million yuan, and the average investment intensity of venture capital institutions is around 7 million 600 thousand yuan, and the investment scale is less than 8 million yuan, accounting for 80%.

Therefore, the investment in each venture capital enterprise is relatively limited, but it is also in line with the current situation in China.

Wang Lianzhou, an inspector of the finance and Economic Commission of the National People's Congress, believes that due to various reasons, it is difficult to predict the timing of the growth enterprise market.

Therefore, all localities may consider formulating corresponding regulations to guide and support the establishment of the property rights trading market of small and medium technology enterprises, and also to establish a regional counter market where conditions permit, so as to meet the diversified needs of stock pfer pactions at different levels and levels.

Of course, we can also consider regulating and rectifying the existing OTC market, using its existing size and hardware conditions to provide an alternative way for venture capital investment to withdraw and venture capital enterprises to refinance.

It encourages the pfer of social and private capital to venture capital investment and effectively solves the problem of subsequent venture capital investment.

He believes that venture capital venture will not be able to sustain the entry and exit channels without venture capital support.

The problem now is not that there is no money in the market, but that the direction and layout of the capital structure need to be improved.

From the macro perspective, the money market has not been effectively utilized because of the lack of investment channels in the money market because of the abundant (8 trillion of the residents' savings plus other idle funds), but the capital market is weak because of relative shortage of funds.

From a micro perspective, some listed companies and even banks are so rich that they have to pfer to the stock market for speculation, while small and medium-sized enterprises are struggling because of insufficient funds.

There are many reasons for this situation. However, the understanding and placement of financial capital and industrial capital, capital market and real economy are biased, which can not be an important reason.

Wang Lianzhou said that at present, there is a tendency of public opinion to closely link the stock market's fall to the overall economic development. It seems that if the stock market is bad, investment will drop and the economy will collapse.

In fact, this is not the case. In the face of the difficult situation of venture capital market, there is a conclusion and reality that many experts do not want to face: when the bull market, the investment of listed companies may not increase the fastest, and bear market, the investment of listed companies is often increasing very fast.

According to market statistics, the average fixed assets investment of listed companies increased by 2.3% and - 10 9% respectively from 1999 to 2000, while the average fixed assets investment of listed companies increased by 83.3% in 2001.

This shows that in the fluctuation of the stock market, there is a reverse relationship between the investment growth of the listed companies and the fluctuation of the stock market.

Is this an accidental phenomenon?

I dare not assert, but at least it shows that putting money on the stock market does not necessarily play a positive role in implementing the macroeconomic regulation and control goals and promoting economic growth.

Ruan Chongwu, a member of the Standing Committee of the National People's Congress (NPC), said that 90s was the fastest growing period of the US economy. The rise in Nasdaq was due to sustained economic growth and technological progress, especially the rapid development of the information industry.

This development is not only conducive to the promotion of venture capital, but also to the expansion and development of venture capital.

The sign of the development of the US economy is that the Nasdaq stock market keeps rising.

Ruan Chongwu suggested that when the venture capital law was promulgated, special attention should be paid to property rights pactions.

In the case of difficult access to the second board market, some powerful enterprises can consider listing on the main board or the gem of Hongkong and the United States, and also can backdoor or buy the shell on the main board.

But the entry conditions are stricter and the cost is higher.

Therefore, the pfer of property rights or equity pfer, asset auction, merger, reorganization, internal repurchase, etc., should be clearly stipulated in the law.

In fact, the way of foreign property rights paction is far more than the opportunity of listing on the second board. 70% of the small and medium-sized enterprises in the United States implement the property right merger and acquisition method, and only 30% of the small and medium-sized enterprises are listed.

Therefore, counter trading and property rights trading centers should be vigorously developed.

In the formulation of venture capital law, the company hopes to activate OTC and property rights pactions.

In addition, the automatic quotation center, property rights center and online trading system should be established to form a standardized market.

In addition, the government should also regulate the government's behavior. If the enterprises want to get preferential tax policies and policies, they need to apply to the government departments and be certified.

And the efficiency of government departments is uneven. It may be that some enterprises are struggling to get a project, but the opportunity has already been missed and the money may not be raised.

In addition, venture capital enterprises are at risk because of their great risks. Inevitably, a large number of enterprises finally embark on bankruptcy and liquidation.

If the government department delays the formalities, it will make the enterprise lose money and the longer the delay, the greater the loss.

Therefore, the efficiency of government is very important for venture enterprises.

It is hoped that the responsibilities and related procedures of the government should be clearly stipulated in the venture capital law.

In this way, the interests of Vc firm can be guaranteed.

Experts believe that from the international experience, the involvement of foreign venture capital is always an important support for the development of venture capital in China.

Therefore, expanding the market access of insurance investment, reducing investment restrictions and improving the pparency of policies, and promoting the development of venture capital in foreign countries are also important issues that must be considered in developing venture capital investment in China.