The development of venture capital industry is not only about the effective operation of venture capital firm, but also its supporting environments. The venture capital firms in different countries have different operation modes, for instance, the organizational structure, the source of finance and the investment behavior. The reason of the differences is that the venture capital supporting environments such as economy, culture, laws and regulations are different in various countries.   The objective of this research is to study the venture capital supporting environments in China and analyze the role of government on how to improve these supporting environments. After research questions are decided, the author analyzes and combines the selected previous researches in different countries in order to build a more systematic, scientific and complete theoretical framework to conduct the case study in China.   In the case study, all seven venture capital supporting environments in China are studied. By analyzing the facts, the author finds out that some environments such as laws and policies and financial environment have developed rapidly in past years and become more and more adapt to the development of venture capital. However, some other environments, especially the culture environment have negative effects on venture capital and can not be easily changed within a short period of time. Based on these findings, the author tries to find out some possible actions that the government can do to reduce these limitations and improve the venture capital supporting environments.     Key words: venture capital; supporting environment; venture business; venture capitalist

This paper attempts to evaluate a dotcom start-up company and a professional young basketball player using Real Option Analysis in the investors’ points of view. That is, we are standing in the financers’ shoes and valuing both cases if they are worth investing in. We believe that real option analysis is the most appropriate valuation method from our current knowledge compared to other traditional valuation methods notably like the Net Present Value (NPV), therefore we try to prove that using both qualitative and quantitative descriptions. The authors concentrate more on applying quantitative methods than giving detailed definitions of real options. Binomial Pricing Model and Monte Carlo simulation with the help of MS Excel and MATLAB were used in the evaluation. The paper consists of two case studies, each tackled differently but both summarized up all together. The paper concludes with a table exhibiting when real options are valuable and a belief that game theory is essential in ROA. / Matlab Codes and Simulation&Binary Tree Model(Excel)