What Are Venture Capital Loans?
Venture capital, also known as "venture capital", is the capital that institutional venture capital funds invest in newly established small businesses that are assessed to have unusual growth opportunities and potential. It is named because it has a small chance of success and a high degree of risk. The core criterion of its investment choice is to obtain high returns in the foreseeable future, so newly-established high-tech enterprises often become its main investment targets. [1]
Venture capital
- Venture capital has matured in many countries and has established operating methods.
- Venture capital
- Venture capital
- Venture capital is mostly established in the form of a company. According to the situation of each country, there are two main organizational structures of venture capital, one is
- Venture capital has a definite cash-out mechanism. Generally, there are three ways. One is to promote the investment of the listed company; the other is to invest in the company.
- Venture capital market
- Venture capital is an emerging statistical concept that is related to "
- Venture capital
- Venture capital has matured in many countries and has established operating methods.
- Venture capital invests in unlisted emerging small and medium-sized enterprises in the entrepreneurial period, especially emerging high-tech
- Venture capital institution
- 1) Venture capital has played a significant role in supporting the development of high-tech industries. Take the United States as an example.
- Venture capital is the potential to offset the value of assets and other positions within a given confidence interval over a given period of time.
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- Government risk capital investment does play a very important role in the development of the venture capital industry, especially in the early stage, which has been proved by the practice of developed countries. The key question is what role should the government play in the development of venture capital, and whether it should adopt direct investment methods (such as the establishment of state-owned equity venture capital companies). In this regard, we should carefully learn from the United States in the development of venture capital Lessons from the failure of government-backed small business investment companies.
- In 1958, the United States Congress issued the Small Business Act and authorized the Small Business Administration to formulate and implement small business investment company plans. Its main purpose is to guide private capital to venture companies through the establishment of government venture capital companies, and to promote US venture capital. Industry development. Small business investment companies can obtain very low interest rate loans from the Small Business Administration, so that many small business investment companies do not invest funds in high-tech ventures, but provide debt financing to those companies with cash inflows in the form of high interest. Take profit. In addition, due to the strong support from the government, small business investment companies lack effective incentives and restraint mechanisms and cannot attract high-quality investment managers. Therefore, investment managers often incur investment because of poor quality, low professionalism and poor management. failure. In 1976, 232 of the 700 small business investment companies nationwide became problematic. To this end, the United States Congress passed a law granting the Small Business Administration a broader enforcement and oversight power to strengthen the audit and management of small business investment companies, but these measures have not reversed the miserable situation of small business investment companies. In 1997, the number of small business investment companies had decreased to 276, accounting for 21% of the total venture capital investment in the United States. By 1999, this proportion had fallen sharply to 1%.
- It can be seen that even under the premise that the United States has such a good business environment and market mechanism, direct government investment is not an ideal way to promote the development of the venture capital industry. Under the condition that the legal system and market mechanism are not complete, China s venture capital industry ca nt even adopt a method in which the government directly invests in setting up venture capital companies and venture capital funds and breeding batches of state-owned or state-owned venture capital companies . Because no matter how well designed and thoughtful the agent scheme is, it is difficult to solve the vacancy of the owner of the funder and the agent problem derived from it. The result may be the double softening of the incentive mechanism and the constraint mechanism. Failure and bankruptcy, or returning to the old path of "the government is both a referee and a player", the market and government functions have both failed. Therefore, in developing China's venture capital industry, the government's main responsibility is not to invest directly, but to increase the credibility of venture capital enterprises with appropriate investment, guide private capital, and motivate social investment. [2]