Although China's legal and policy environment for the VC industry is improving, Chinese policy makers who wish to promote the VC in China need to increase the regulatory supply of and legal demand for VC. Against the background of this study of the experiences of the U.S. VC industry, it becomes clear that some VC legal techniques employed in the U.S. should be adopted in China. Based on the lessons learned in the U.S., China should improve its financial liberalization, create new legal techniques for VC governance in ventures, promote its exit channels, and provide a proper stimulus policy. / Since the future of China's VC industry is likely follow the model presented by the VC industry in the U.S., which is seen by most commentators as the best VC industry in the world, China should study the important lessons learned in the century of VC legal experiences in the U.S. This study compares the Chinese VC legal system with that of the U.S. in four aspects: funding, governance in ventures, exits, and stimulus. / The main problems of China's VC legal system include those of fundraising, overly complex foreign VC investment restrictions, limited exit channels, and ineffective governmental stimulus. In an attempt to solve these problems, this study examines six key factors that influence the nature and performance of a proper VC legal framework. These factors include the formation and fundraising of VC firms, the usual life cycle of VC investment, the impact of economic and political policy on VC development, the governance of ventures, an established financial market, and governmental VC stimulus. / Venture capital (VC) is the investment by a financial firm in high-growth, high-risk, and high-tech private start-ups for high returns in the future. Since the importance of VC for the high technology sector and the economy as a whole has been widely accepted in China, it follows that a successful VC industry is an important tool for China to further develop and strengthen its economy and high technology industry. A well designed legal system will attract more investors to engage in China's VC industry, while a poorly designed legal regime will throw obstacles in the way of investments for the industry. This study offers evidence on how a proper legal framework may be established for China's VC industry. / Zhang, Zhang. / Advisers: David Donald; Xi Chao. / Source: Dissertation Abstracts International, Volume: 73-01, Section: A, page: . / Thesis (Ph.D.)--Chinese University of Hong Kong, 2010. / Includes bibliographical references (leaves 260-281). / Electronic reproduction. Hong Kong : Chinese University of Hong Kong, [2012] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Electronic reproduction. [Ann Arbor, MI] : ProQuest Information and Learning, [201-] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Abstract also in Chinese.

Abstract I apply survival analysis to model the factors that influence venture capital (VC) investment duration. Specifically, I fit a parametric survival model to plot the probability of venture capital exit over time. Given a small number of initial public offering (IPO) exits in the collected sample, the analysis focuses exclusively on exits through mergers and acquisitions (M&A). I fit a Cox proportional hazards model and a parametric model under the generalized Gamma distribution with financing, entrepreneurial firm, and VC firm characteristics. For the first time in the VC investment duration literature, I investigate the time to exit with data of Asian entrepreneurial firms and VC firms. The empirical analysis first draws comparisons between Asian, European, and North American venture capital, and then focuses the analysis to North America. I find that venture capital investments in North America are most likely to exit through M&A, followed by European VC investments and then by Asian VC investments. The region of the VC firm has no effect on the likelihood of an M&A exit.

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The interest for venture capital within the financial sector in Sweden has, according to earlier studies, been seen as a growing occurrence. Especially for what is known as informal venture capital. In modern times, private investors who engage themselves in small, unlisted companies, providing informal venture capital are to be known as business angels. They close equity gaps on the financial market by contribute financial capital to start-ups and are therefore an important participant on today’s market. The aim of this study is to generate further understanding and knowledge about business angels and their view on investing equity in companies who are still in their early development phases. Furthermore, the aim is to generate knowledge about business angel’s view on the risks they are being involved in with their investments in companies’ initial development phases. The methodology used is semi-structured interviews. The result is presented from the answers of three respondents, which mainly shows that business angels have to deal with different risks such as financial risks, business related risks and risks associated with the relationship between the business angel and entrepreneur. In conclusion, the risks mentioned previously are all essential for a business angel investment and need to be considered before and after an investment is being completed. Other studies also show similar results. An agency theory approach is also being used in this study to provide a further understanding regarding the risks business angels have to consider with their investments.

Bakgrund       Tillväxtviljan bland de svenska småföretagen är stor, men avsaknad av kapital begränsar många entreprenörer och småföretag. Den höga risknivån minskar möjligheterna att erhålla exempelvis bankfinansiering, och för många tillväxtbolag i tidiga faser kan Venture Capital därför vara det enda finansieringsalternativet. Syfte               Syftet med studien är att skapa förståelse för de investeringskriterier som svenska Venture Capital-bolag använder vid sin utvärdering av potentiella investeringsobjekt samt jämföra dessa med vad entreprenörer anser påverkar utvecklingen av ett företag. Metod             Studien är av kvalitativ karaktär och empirin består av data från 20 genomförda intervjuer samt skriftliga frågeformulär, där respondenterna utgörs av venture-kapitalister samt entreprenörer som har erhållit Venture Capital-finansiering. Resultat         De kriterier som är centrala vid Venture Capital-bolags utvärdering av potentiella investeringsobjekt är entreprenörsteamet, marknads-förutsättningar samt produkterbjudande. Av dessa kriterier anser både venture-kapitalister och entreprenörer att det är entreprenörsteamet som i störst utsträckning påverkar ett företags utveckling. Att entreprenörsteamet tillskrivs så stor betydelse förklaras av att förutsättningarna för företagets fortsatta utveckling ständigt förändras, vilket ställer krav på att entreprenörsteamet har förmåga att hantera denna dynamiska process och anpassa företagets utveckling efter oförutsedda förändringar. / Background   There is a strong desire to grow among small Swedish enterprises, but lack of capital is a limiting factor to many entrepreneurs and small enterprises. The high level of risk reduces the possibilities of receiving financing through bank loan or similar, which makes Venture Capital the only financing alternative for some high growth-ventures in early stages. Aim                 The aim of this study is to provide understanding for the investment criteria used by Swedish Venture Capital firms during their evaluation of investment propositions, and to compare these with factors that entrepreneurs perceive as influential to the development of a company. Methodology The approach of this study is qualitative, and the presented findings are conducted from 20 interviews and written questionnaires. The respondents consist of venture capitalists and entrepreneurs who have received Venture Capital financing. Result            The criteria that are of central importance to Venture Capital firms’     when evaluating investment propositions are the entrepreneurial team, the market potential and the product offer. Among these criteria both entrepreneurs and venture capitalists perceive the entrepreneurial team as the criterion with the largest impact on the development of a company. The importance of the entrepreneurial team is explained by the fact that the conditions for the company’s further development are under continuous change, which necessitates the entrepreneurial team’s ability to handle this dynamic process and adapt the company’s development to unexpected changes.

A Study of Venture Capitals¡¦ Investment Decision-Making and Performance in Taiwan: A Case of C Venture Capital Abstract Info-tech industry plays an important role in Taiwan¡¦s economic development, and for the last eighteen years a huge amount of capital invested in domestic high-tech industry by Taiwan¡¦s venture capitalists has been spurring capital formation of its high-tech industry. Moreover, the investment by venture capitals in earlier technology companies provides technology start-up teams with outstanding capital backup for management, which thus effectively promotes innovation and development of technology industry. Also, the provision of capital by venture capital industry, the talented technicians trained by ITRI, and the cluster of vertically related industries in Hsinchu Science-based industrial park jointly offer advantaged conditions for the development of such tech industries as semi-conductor, electronics information, and opto-electronic, which makes Taiwan one of the major manufacturing countries in global info-tech industry. However, venture capital is a high-risk, high-stakes investment industry; issues such as whether domestic venture capitalists have preferences in investment decision-making in terms of investing in high-tech companies at stages of seed, early, expansion, and mature, as well as which one¡¦s performance will be better when it comes to investing in domestic or foreign (mainly in America) high-tech companies are worth investigating. Still, little research on venture capitals was conducted to explore key decision factors for whether to invest and what factors cause investment projects to succeed or fail. Using C venture capital as a case, the primary purposes of this study are therefore to examine if there exists any one certain preferred decision factor for investment, to follow up the outcomes of investment projects, and to seek the factors of success and failure for these projects. The results of this study show that venture capitalists do prefer to invest at the stages of expansion and mature, for it is easier to predict the outcomes of investment projects. In addition, as a result of Taiwan¡¦s tech industry relocating to mainland China, venture capitalists¡¦ being still forbidden to invest in China, and the significantly decreasing number of domestic profitable projects, the ratio of increasing investment at the seed and early stages has been rising accordingly. Furthermore, it can be found that the investment performance on foreign high-tech companies is better than that on domestics, the ratio of investment continues rising year by year, and venture capital is moving toward globalization. In this study, the decision factors directing the investment decision-making of the board of directors in the case company are based on four dimensions of evaluation principles: (a) business starter & management team; (b) industry & market; (c) product & technology; and (d) financial planning & reward. The findings of this study show that investment target companies are more likely to be invested if they possess better technology platforms or patents than their competitors, or their products are more unique. But they are unlikely to be invested if their industrial future is uncertain or the product market is small. Also, according to the analysis of factors for the outcomes of investment projects, projects invested based on their advantaged conditions in the dimensions of industry & market and product & technology have better chance to succeed; while those invested due to being advantageous in the dimensions of business starter & management team, and financial planning & reward are more likely to fail. This study indicates that although the two decision factors of finance and management team have advantages, without the matching of industry & market and product & technology, high-tech industry is not necessarily able to gain profit; but if there are problems with the latter two factors, the companies will definitely fail, leading to bankruptcy and liquidation. To sum up, having advantages in both factors of industry & market and product & technology is more likely to profit a company, but only with the positive incorporation of management team and financial planning can it further ensure a company¡¦s success.

Venture capitals have been playing an important role in helping new and small businesses. Even though venture capital currently isn¡¦t part of banking business but it has some banking capital properties. In the future, it can be part of banking products. This research is to study how venture capital can achieve its investment goals and decrease the loss from thorough pre-investment assessment and the control of its investment. This study is to analyze the assessment of the venture capital company , the advantages and the disadvantages of the strategy, and hope to develop a better and feasible investment strategy. Venture capital companies are facing some problems in these years, such as, difficulty of raising funds¡B searching cases and withdraw as well as poor performance. This study has discovered some suitable strategies, they are: 1. Choosing the right case is more important than do the case right. 2. Sell stocks out at the right time is more important than choosing the right case. 3. The success of the case depends on choosing the mainstream industry. To avoid the loss of the investment depends on the management team. Conclusion: After the most prosperous period for venture capital in year 2000, venture capital has been facing some unfavorable issues like many companies moving out of Taiwan¡Bfewer cases and the withdraw of funds. However, venture capitals should continue to provide the function of incubation for new business. When facing the changes of the environment, it¡¦s necessary to change the investment strategies. This study has provided some feasible strategies for venture capital companies. They are: 1.Develop the uniqueness of the company. 2. Set up global offices. 3. Educate employees with international vision. 4. Merge companies to become a bigger cooperation. 5. Raise funds and invest globally. Suggestions: 1. Suggest the government removing limitations of investing categories for venture capitals. 2. Venture capital companies should enlarge the size. Government should allow venture capitals to invest in the stock market. 3. Merge companies with poor performance 4. Differentiate the investment strategies. Raise funds from different resources. 5. Take good advantages of private equity funds to conduct company restructuring.