Venture Capital Is In The Dilemma Of Adjustment

The 2004 China venture capital development report released today pointed out that after the rapid development stage, China's venture capital started in the middle of 1980s and entered the adjustment stage since 2001. So far, the development of venture capital in China is still at a relatively stagnant stage.

Since 2003, the total volume of venture capital has shrunk dramatically, and the industry has gone from bad to worse.

It is reported that the venture capital firm, which manages more than 20 million yuan in capital, covers venture capital companies and venture capital management companies.

The report thinks that the development of venture capital in China presents 10 major characteristics.

First of all, venture capital institutions have sharply reduced.

In 2003, the number of statistical samples dropped from 296 in 2002 to 233, with a drop of nearly 1 / 3.

Many agencies have withdrawn from the venture capital industry, or some are preparing to withdraw.

Areas where venture capital is very active has shrunk dramatically.

In the key areas of venture capital? Beijing, about 1 / 3 of venture capitalists clearly say they no longer engage in venture capital industry or are turning to other businesses.

Secondly, the total amount of venture capital has shrunk dramatically.

The total amount of venture capital in 2003 dropped from about 58000000000 yuan in 2002 to 50 billion yuan, which shrank by about 8000000000.

Once again, the proportion of government and government funds decreased and private capital funds increased.

The survey shows that government and government funds have dropped by about 40%, and private capital is about 60%. Compared with the survey results in 2000, the ratio is basically reversed.

Fourth, venture capital institutions are gathering in developed areas.

The most important thing for venture capital is to have a large number of projects to invest in, and at the same time, to have a better operating environment. Compared with the amount of capital invested in venture capital, the number of institutions is mainly in Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin, which are relatively developed regions, and Beijing has dropped to sixth place.

Fifth, the industry concentration of venture capital projects is high.

Venture capital projects basically focus on traditional manufacturing, new material industry, medicine and ship protection IT service industry, biotechnology, software industry. These six industries focus on 52% venture capital cases and venture capital.

However, there are relatively few venture capital projects in environmental protection, Internet, consumer products, computer hardware and other industries.

Sixth, traditional industries have become the new focus of venture capital.

In the past, the focus of venture capital was to invest in high and new technology industries and high and new technology projects, and the characteristics of the 2003 showed a new trend, and traditional industries became the focus.

The high and new technology industry has decreased from 86% to 90% to 79.8%, and traditional industries account for 20.2%. This shows that high and new technology has not really become a profitable industry in China, and has not yet brought more lucrative returns to venture capital capital, and the return of traditional industries should be highlighted.

Seventh, there is no substantial change in the operation of venture capital institutions.

By the end of 2003, about more than 200 venture capital institutions in China had accumulated 2666 investment projects, and more than 500 of them had dropped out of the total, of which 170 came out in 2003.

In the more than 2000 cumulative projects of venture capital institutions, the market share accounted for 4%, and 8.9% of them were listed, 9.8% of which were acquired by other institutions, 4.5% of shareholders' buybacks, 2.9% of management buyout, 60.5% of which continued to run, 4.9% of liquidation, and venture capital institutions did not receive relatively large capital returns from their exit.

According to the report, in the investigation process of venture capital institutions, there are five major problems that perplex industry development.

The first is the heavy taxation of institutions.

In 2003, the total income of venture capital institutions was 860 million yuan, 97 million 205 thousand yuan was paid to the venture capital, and the income tax was 63 million 874 thousand yuan.

The average income of venture capital institutions is about 12 million yuan, the average tax paid is 1 million 430 thousand, the average income tax is 940 thousand, and the tax burden is over 10% of income, which is higher than that of most other industries below 8%.

The survey shows that more than 50% of venture capital institutions earn 7% of their income tax.

Venture capital institutions are mainly capital gains and dividends. From the perspective of dividends, taxes should be paid and should not be taxable from the perspective of capital gains.

This income tax is a very heavy burden, and this is also a very hot issue for venture capital institutions.

Two is financing difficulties.

Most of venture capital institutions are registered in the form of a company. Refinancing needs to open the board of directors, through the approval of the original shareholders.

In the survey, about 16.4% of venture capital institutions now have difficulties in financing. The funds in front are invested, and the funds behind are scarce.

Three is unclear positioning.

In the survey, 40% of the institutions considered that policy uncertainty was an important factor restricting the development of venture capital.

Venture capital is a common enterprise in China?

Is it a special kind of business?

Or a financial enterprise?

What kind of policy should it enjoy?

There is not a stable expectation for the industry. Many venture capital firms have pformed into ordinary enterprises or production enterprises.

The four is that there is no very good connection mechanism between innovation fund, venture capital and SME board three.

The SME board is basically not related to venture capital institutions.

SME boards can not be the main market for venture capital firms to withdraw. They can only be one of the exit channels. They should establish a multi-level capital market. Five, there is no national venture capital association.

There are dozens of local venture capital associations, but there is no unified coordination department in the whole country, and many of the information is asymmetric.

Statistics are also varied. Some say that venture capital development is very good. Some say that venture capital development is very bad. In fact, it is directly related to the lack of a unified and coordinated arrangement in the whole sample and the way of investigation.