Dissertations / Theses on the topic 'Governmental venture capital'

Governments have increased their commitment to spur innovation by increasing the amount of venture capital (VC) flowing to the venture capital market over the last decades. Still, research shows that governmental venture capital (GVC) has no impact on innovation. The literature comparing governmental and private venture capital’s effect on innovation is scarce. Therefore, this study explores how different types of VC affects innovation in Swedish entrepreneurial companies. Based on VC data from the Swedish Venture Capital Association (SVCA), we use 440 VC-backed companies and 440 control companies to test the effects of governmental venture capital, private venture capital (PVC), and mixed venture capital (MVC, a combination of GVC and PVC) on four innovation indicators - patent grants, passive citations, trademarks, and industrial design rights. We use fixed-effects models to compare different VC types and Difference-in-Differences models to draw inferences about causality. Our findings show that all types of venture capital positively affect innovation, while MVC has the most substantial effects. PVC spur innovation mainly through trademarks, while GVC increases both trademarks and patent quality. We argue that MVC has access to an immense amount of capital and can allocate its non-financial resources better than both PVC and GVC separately. We also suggest that GVC focuses more on innovation quality and PVC focuses more on commercializing innovations and bringing them to the market.

Universities are seen as an opportunity for economic growth and increased employment and university spin-offs, operating with new and emerging technologies, are considered as means of return on academic research. However, some problems may occur related to the large number amount of stakeholders and their goals. The government is one important player and it can act as a policy maker, provider of financial support, or even as an owner. Governments regularly provide the innovation market with co-working hubs, incubators and science parks.  The purpose of this thesis is to analyze the possibility of knowledge- transfer from the Swedish system to the Russian regarding the support from the government to the entrepreneurial ventures through the science parks and incubators, and what and why would prevent Russia to adopt this model.

"Submitted in partial fulfillment of the requirements for the degree of Master of Business Administration from the Naval Postgraduate School, December 2007."
Advisor(s): Hensel, Nayantara ; Rendon, Rene. "December 2007." "MBA professional report"--Cover. Description based on title screen as viewed on January 10, 2008. Includes bibliographical references (p. 103-107). Also available in print.

MBA Professional Report
This research project provides an initial assessment as to whether the government should maintain decentralized management of its venture capital (VC) initiatives. Previous research focused on the viability of using VC to supplement government RandD spending. In contrast, this research project specifically addresses whether the DoD should centralize or decentralize execution of VC. The researchers investigated current Government VC initiatives, interviewed subject matter experts in the VC industry, and assessed how well the Government VC initiatives are poised to fill the DoD's capability gaps as defined by the QDR. The researchers provide rationale for why VC is a relevant source for Government RandD using data from the National Venture Capital Association (NVCA) and other literature. Ultimately, the research suggests that the Government should continue to foster decentralized VC execution with increased focus on technology transference.

This thesis contributes to the current discourse around co-evolution, this study investigates co-evolution between the South African venture capital industry and the South African government. Using a qualitative method which involved gathering data from archival sources and contemporary interviews, this study extends the growing literature on the co-evolution of organizations and their institutional environment in three ways. First, the study shows that the co-evolution that occurs between organizations and the institutional environment, is facilitated by both entities' respective need for legitimate status with different audiences. Second, the study furthers our understanding of co-evolution at the meso level (i.e. the organizational field) by illustrating the place of subject positions of organizations and power in the co-evolution that occurs at that level. Third, from the narrative presented in the study on the emergence of a venture capital industry in South Africa, the study explicates the importance of a free market system in a transition economy as it engenders the growth and development of a venture capital industry in such economies.

Currently, there are indications that Europe is facing an innovation deficit. The main explanation to the lack of innovation is considered to be that new technology-based firms are facing difficulties in receiving funding and consequently do not establish on the market. As new technology-based firms have an important role in technology development and overall growth, a consequence thereof could be a long- lasting negative effect on technological change and economic growth. The venture capital industry is frequently put forward as the actor that can provide financing for these types of firms. This study aimed to investigate the contemporary role that Swedish traditional venture capitalists and government supported venture capitalists have in the funding landscape of new technology-based firms. To fulfill this purpose, the study analyzed both the investors' preferences and the challenges with investing into new technology-based firms. The findings were acquired through performing eight semi- structured interviews with highly knowledgeable practitioners. In addition, literature was scrutinized. The study concluded that the preferences of the venture capital firms are heavily misaligned with investments into new technology and that digital companies present a better aligned investment alternative. More specifically, venture capitalists perceived the teams of new technology-based firms to be lacking, which is misaligned with the venture capitalists' strong emphasis on the team. New technology-based firms were also perceived to be associated with great risks, which is misaligned with the risk aversion of venture capitalists. The high risk was found to be related to the high degree of novelty, the perceived difficulties in finding syndication partners, the venture capitalists' lack of specific knowledge and experience, the long time to market and the large funding need in early stages. Further, the long time to market is ill-suited with the fund structure of traditional venture capital firms. On the other hand, digital companies were found to be well aligned with the venture capitalists' risk profile and preference for investing large amounts of capital at once. When it comes to government-supported venture capitalists, the study concluded that Industrifonden's preferences are similar to those of traditional venture capitalists and that Almi Invest, due to its structure, faces specific barriers for investing. Based on these findings, the conclusion was drawn that the likelihood is low that venture capitalists will invest in new technology-based firms. In order to be able to draw conclusions regarding the impacts on innovation and technological change, further research on the capabilities and preferences of informal venture capital is necessary. Further research could also attend to the demand of financing to increase the understanding of the innovation deficit.
Idag finns indikationer på innovationsbrist i Europa. En huvudsaklig orsak till innovationsbristen anses vara att bolag med ny teknologi har svårt att få finansiering och därmed etablera sig på marknaden. Eftersom ny teknologi spelar en viktig roll i teknologisk utveckling och ekonomisk tillväxt, är en möjlig konsekvens av innovationsbristen långtgående negativa effekter på teknologisk utveckling och ekonomisk tillväxt. Venture capital industrin framhålls ofta som en aktör som kan finansiera denna typ av bolag. Denna studie syftade till att undersöka vilken roll svenska traditionella venture capital fonder och statliga venture capital fonder har i finansieringslandskapet av ny teknologi. För att uppnå detta syfte analyserade studien både investerarnas preferenser och utmaningarna med att investera i ny teknologi. Resultaten nåddes genom att genomföra semistrukturerade intervjuer med åtta erfarna praktiserande i industrin. Intervjuobjekten hade antingen erfarenhet från traditionellt eller statligt venture capital. Utöver detta granskades litteratur på området. Studien fann att venture capital industrins preferenser på flera vis inte matchar investeringar i ny teknologi medan digitala bolag väl passar in i preferenserna. Mer specifikt ansåg venture capitalisterna att teamen för ny teknologiska bolag saknar viktiga kvalitéer, något som missmatchar venture capitalisternas starka fokus på teamet. Nyteknologiska bolag ansågs också vara associerade med hög risk, vilket står i stark kontrast till venture capitalisternas riskaversion. Den höga risken ansågs vara relaterad till investeringens nya natur, den upplevda svårigheten att hitta syndikteringspartners, venture capitalisters avsaknad av specifik erfarenhet, den långa tiden till marknaden och de stora kapitalbehoven i tidiga skeden. Vidare fann studien att den långa tiden till marknaden var misspassat till fondstrukturen hos traditionella venture capitalister. Och andra sidan visade studien att digitala bolag passar väl med venture capitalisters riskprofil och preferens för att investera stora belopp på en gång. När det kommer till statliga venture capital fonder fann studien att Industrifondens preferenser är mycket lika de traditionella venture capitalisternas preferenser och att Almi Invest står inför särskilda barriärer för att investera i ny teknologi. Baserat på dessa resultat konkluderade studien att sannolikheten är låg att venture capitalister investerar i ny teknologi. Forskning på kapaciteterna och preferenserna för informellt kapital är dock nödvändigt för att kunna dra slutsatser kring effekterna på innovation och teknisk utveckling. Framtida forskning bör också fokusera på efterfrågan på kapital för att förstå innovationsbristen.

During the past decade (1984-1994), Australia experienced its worst recession since the depression of the 30's, followed by a no-growth period and an unemployment rate hovering around nine per cent. The awareness of Commonwealth and State Governments of the need for specific policies to stimulate new ventures and support small and medium enterprises (SME's), was increased by a range of reviews which resulted in a variety of initiatives. However, two key national initiatives, licensed Management and Investment Companies (MIC's) and the Second Board Stock Market, which aimed at making access to funds easier for new ventures, failed to provide sustained financial support to new innovative firms. Small businesses in Australia account for some 80 per cent of all businesses and 50 per cent of employment in the private sector. While many factors contribute to the successful establishment and growth of new businesses, a key factor is the availability of and access to affordable finance. The major objective of this study was to identify key success/failure factors in new venture creation and to review in detail the rise and fall of the Second Board Stock Market (1984-1992) - arguably one of the most significant Government initiatives during the 80's to provide access to equity funds. A survey of Melbourne companies listed on the Second Board was to provide valuable information on the success/failure of the Second Board Stock Market and to illuminate desirable Government initiatives meeting SME's survival needs.

This study investigates the source of financing in Austrian tech startups and aims to identify the main factors that affect the decision making of these firms. In doing so, we aim to contribute to the relatively limited field of research conducted in Europe. In order to achieve the purpose of this study, we implemented a multiple case study method as the research design. For the purpose of this study, a literature review was used that generated a theoretical framework. This framework focuses on capital structure with the main emphasis being on the pecking order theory. Additionally, government financial support is included as a  secondary priority. Together with the theoretical framework, our empirical findings i.e. data from the interviews with six companies, one email response, and two additional secondary data from an Austrian startup publication comprised the basis for our analysis.   Our findings from the sample companies used in this study show that Austrian tech startups use internal funding as an initial source of financing their new venture. When it comes to the order of funding, our findings show that most of the startups used in this study utilized equity as a second source of financing after internal funding and before debt. However, when it comes to the preference of the founders, half preferred a financing order that is inline with the pecking order theory while the remaining half preferred otherwise choosing equity to debt.   From this, three conclusions can be drawn. First, the limited funding options available affect the decision making and preference of the tech startups. Second, founders value the nonfinancial added value they can get from investors both when implementing and preferring a financing option. Third, the future growth potential and the long term strategy of the startups and their founders play a crucial role in the funding option they prefer to finance their venture.   Additionally, when it comes to capital structure, we see that most Austrian tech startups used in this study do not have a set policy. When it comes to Government financial support (GFS), we see that financial support from the government plays a significant role in Austrian tech startup financing.

Coordenação de Aperfeiçoamento de Pessoal de Nível Superior - CAPES
Technological entrepreneurs have played an important role in economic development, assisting in growth sectors and boosting the gross domestic product. The emergence and perpetuation of technology-based companies may be favored by capture of adequate financial resources, whether in the traditional financial market, either through development institutions to strengthen research and development or through new forms of these funds. Technology companies are facing difficulties in accessing a number of prerequisites in lending in traditional financial institutions, such as transaction assurance, the organization's lifetime, terms and interest rates on loans. These companies usually do not have a very long history, or a grand past, but have prospects for a future that can be very promising. Given the importance of technology-based companies for economic development, as well as on the difficulties these companies finance their activities, the aim of this study is to investigate which sources of financing used by technology entrepreneurs in the state of Sergipe to capture the resources to develop their activities. To this end, have been held six interviews with managers of technology-based companies in the state of Sergipe in order to analyze the financing mechanisms used by them. This study is characterized as qualitative, in which the exploratory research strategy used for data collection a script for semi-structured interviews. From the analysis of the data it was possible to verify that the Sergipe TBC making little use of traditional sources of credit, and between alternative is the subsidy the most used to develop innovation projects. Angel investors are desired, but not used, may not be interested or for disagreement with the proposals received. Crowdfunding and venture capital are not part of the prospects of the companies surveyed, either through unfamiliarity as their ability to use or using the projection in the distant future, respectively. It was observed that the approval of a grant announcement allows approval in other lines of credit as working capital, financing and credit cards. It was also noted that in projects financed with subsidy there is little concern about its commercial and financial success, while also having the desire to succeed, but the product coming from this project can not receive adequate attention, and be replaced by another project of that same TBC, perhaps funded by a new of a subsidy funding. The subsidy offers the opportunity for a rapid formation of a professional team but that does not turn into a hold that team. It was noticed that one of the main difficulties of entrepreneurs is the lack of skills in commercial and administrative aspects, which are aggravated by insufficient support of incubators and technology parks. One of the most important and common difficulties for the surveyed entrepreneurs is the delay in the release of funds approved which entails the loss of the ideal time for the development and subsequent launch of innovative product.
Os empreendedores tecnológicos exercem um papel fundamental no desenvolvimento econômico, auxiliando no crescimento de setores e impulsionando o produto interno bruto do país. O surgimento e a perpetuação das empresas de base tecnológica pode ser favorecido pela captação de recursos financeiros adequados, seja no mercado financeiro tradicional, seja através de instituições de fomento para o fortalecimento da pesquisa e desenvolvimento, ou ainda através de novas formas de captação destes recursos. Empresas de base tecnológica se deparam com dificuldades de acesso a uma série de pré-requisitos na concessão de crédito em instituições tradicionais, como por exemplo, garantias de operação, tempo de vida da organização, prazos e taxas de juros nos financiamentos. Essas empresas geralmente não têm um histórico muito longo, ou um passado grandioso, mas têm perspectivas de um futuro que pode ser muito promissor. Diante da importância das empresas de base tecnológica para o desenvolvimento econômico, assim como diante das dificuldades destas empresas financiarem suas atividades, o objetivo deste trabalho é investigar quais as fontes de financiamento usadas pelos empreendedores tecnológicos do Estado de Sergipe para captarem os recursos necessários para desenvolverem suas atividades. Para tal, foram realizadas seis entrevistas com os gestores de empresas sergipanas de base tecnológica com o objetivo de analisar os mecanismos de financiamento utilizados por eles. Este estudo se caracteriza como de natureza qualitativa, no qual a estratégia de pesquisa exploratória utilizou para a coleta dos dados um roteiro de entrevistas semiestruturado. A partir da análise dos dados foi possível verificar que as EBT de Sergipe pouco utilizam as fontes tradicionais de crédito, e entre as fontes alternativas, a de subvenção é a mais utilizada para desenvolver projetos de inovação. Investidores anjos são desejados, mas não utilizados, seja por não haver interessados ou pela discordância com as propostas recebidas. Crowdfunding e capital de risco não fazem parte das perspectivas das empresas pesquisadas, seja por desconhecimento quanto a sua possibilidade de uso ou pela projeção de utilizar em um futuro distante, respectivamente. Foi possível observar que a aprovação em um edital de subvenção possibilita a aprovação em outras linhas de crédito como capital de giro, financiamentos e cartões de crédito. Também foi observado que em projetos financiados com subvenção há pouca preocupação quanto ao seu sucesso comercial e financeiro, apesar de também haver o desejo de sucesso, mas o produto oriundo desse projeto pode não receber a devida atenção e ser substituído por outro projeto daquela mesma EBT, financiado talvez por uma nova verba de subvenção. A subvenção oferece a oportunidade de uma formação rápida de uma equipe de profissionais mas que não se transforma em uma retenção dessa equipe. Foi percebido que uma das principais dificuldades dos empreendedores é a falta de habilidades em aspectos comerciais e administrativos, que são agravados pelo insuficiente apoio de incubadoras e parques tecnológicos. Uma das dificuldades mais relevantes e comuns para os empreendedores pesquisados é a demora na liberação de recursos aprovados que acarreta a perda do momento ideal para o desenvolvimento e o consequente lançamento de produto inovador.
São Cristóvão, SE

This thesis analyzes the support and financing of start-up projects in Israel, especially in the period of years 2003 - 2015. Main goalof the thesis is to analyze the developmnet of of the Israeli startup environment, facts and the institutions that influence it. The thesis furthermore compares the development of the startup ecosystem in Israel and the USA during the period mentioned above. To achieve these goals the method of analysis has been chosen, especially causal, cestoral and system analysis. The thesis shows that the mains causes of the dynamic development of the startup ecosystem in Israel is in particular the government initiative together with the creation of the Office of the Chief Scientist, constantly rising spending on R&D and the associated support for venture capital funds. In comparison with the US, in Israel, the government sector plays a significant role in all types of support, whether financial or institutional, thus motivating foreign investors to enter the Israeli financial market. The success of the Israeli state lies also in its historical events, cultural habits and the features of the population. The main benefit of the thesis, except the analysis of the Israeli startup environment and its comparison with the US is a comprehensive analysis of the insignificant facts that influenced its current development.

When the business structure of a country is dependent on micro, small and mediumsized enterprises it seems essential to understand and try to mitigate, one of their main challenges. Although having access to finance is an important element for enterprises’ development, small and medium enterprises still have credit restrictions. Mainly because of its size, risk and lack of financial history. SMEs create jobs and play a crucial role in the economy of every country; therefore this dissertation is based on a research process that shows in one document the several financial options available. Portugal is still a conservative country regarding the way companies finance themselves. However, a new tendency of alternative ways of funding is emerging and becoming more relevant. Five solutions were studied: Crowdfunding, Business Angels, Venture Capital, Bank and Governmental Solutions. Parallel to this thesis, a consulting project was developed with the company Perfect Fit Services, a microenterprise that is searching for financial aid for its expansion, fact that led to the development of this thesis. The results of this research show that it is even more challenging for a SME that does not have a technological base and is a small scale business to get alternative funding. And the solutions offered always depend on the business idea and the stage of the enterprise’s life cycle.

This paper examines if Swedish government funded venture capital has managed to achieve the general goals set out by the government. The basis of the paper is a report published by The Swedish National Audit Office in 2014 and the paper is analysing the picture given in the report. This has been done through four different studies to see in what phases that capital is given, if they act in a complementary way through time, in what region the capital is given and by studying if there is a financial difference in different portfolio companies. This has been done by comparing private and governmental venture capital firms. The result indicates that the government funded venture capital invest less in early stages compared to the private firms. There is no statistical difference when talking about the financial development of the portfolio companies. The government funded venture capital seems to be acting in more region compared to the private and has less investments in the big city areas. The government funded venture capital might act in a complementary way or they might be crowding out the private venture capital-firms.
Uppsatsen undersöker om statligt finansierat venture capital har uppfyllt de generella riktlinjer som satts upp av regeringen. Grunden till uppsatsen ligger i Riksrevisionens rapport från 2014 och analyserar den bild som läggs fram och försöker genom undersökningar och teori diskutera om kritiken är relevant. Detta har gjorts genom fyra olika undersökningar i syfte att se till vilka faser kapitalet skjuts till, om de agerar marknadskompletterande över tiden, vilka regioner kapitalet går till samt hur portföljbolagen presterar rent ekonomiskt över tiden. Detta görs genom en jämförelse mellan de privata och statliga venture capital-aktörerna. Det som resultatet indikerar är att de statliga aktörerna inte investerar i tidigare faser än de privata. Det går inte att statistiskt se en skillnad mellan de privata och statliga aktörerna gällande utvecklingen på de portföljbolag som de äger eller har ägt. De statliga aktörerna verkar gå in i färre storstadsregioner än de privata samt att de väljer att investera i fler regioner generellt. De statliga aktörerna verkar agerar marknadskompletterande över tid, det skulle dock kunna vara så att de tränger ut de privata aktörerna.

This thesis will discuss the role of government in venture capital market and illustrate the national difference of that through a comparative study of government expenditure supporting policies of venture capital investment in the USA, Canada and China. Firstly, the prototype programs designed by Small Business Administration (SBA) of the United States and Canadian policies by the Business Development Bank of Canada (BDC) will be discussed. Secondly, the current Chinese government expenditure supporting policies will then be studied in the context of the Chinese venture capital market’s unique political, economical and legislative background. Ultimately, potential improvements in the future expenditure incentive programs in China will be explored.

This paper studies the impact of financing by a particular set of Government-Sponsored Venture Capital (GSVC) funds, the Revitalizar VC Funds, on the performance of Portuguese SMEs measured by employment, sales and sales to total assets growth. Through an analysis using a control group of non-GSVC-backed SMEs, I conclude that in the short-term GSVC funding seems to hinder efficiency, does not seem to significantly relate to sales growth in high-tech industries and significantly relates to decreases of sales growth in low-tech industries. Contrastingly, GSVC-backed SMEs display a significantly higher performance in terms of employee growth, particularly for the high-tech industries.

Start-ups and SME’s can be considered the engine of economies in the developed world. With them, we can see the thriving of a country’s economy, but to invest, they need to find alternative sources of funding rather than banks and public funds. New funding trend shows the increase in the investment of Venture Capital in this kind of companies, which represents a big portion of what start-ups companies get to invest in their businesses and projects. Even though VC funds have a relevant importance in certain markets, in the European case the investment made in those firms continue to be carried out, mainly, by the traditional means: banks and government agencies, through European financing programmes. The lack of private investment made by corporations and market-funded VC funds represents a threat to the European countries and companies, which face serious troubles to find funding. Governmentsponsoring arrived and could work as a solution, filling the gaps left by private investors and to serve as benchmark to these, creating a “push-pull” effect to get higher levels of capital available to companies. In this dissertation, two models were tested in order to explain the relation between the effect that the government-sponsoring funds have in the VC industry itself and how the industry could beneficiate with this kind of investment. The introduction of unconventional variables in these models can help to improve the importance of GVC in Europe and future contributions in this area.
Start-ups e PMEs podem ser consideradas o motor das economias nos países desenvolvidos. Com elas, pode-se observar o sucesso da economia de um país, mas para que invistam, precisam de encontrar formas alternativas de financiamento sem estar dependentes de bancos ou capital público. Novas tendências de financiamento mostram um crescimento no investimento de capital de risco neste tipo de empresas, representando a maior parte do capital disponível que as "start-ups" têm para investir nos seus negócios e projectos. Apesar do capital de risco ter grande relevância em determinados mercados, na Europa o investimento feito nesse tipo de empresas continua, principalmente, a ser pelas entidades tradicionais: bancos e agências estatais, através de fundos comunitários europeus. A falta de investimento privado feito por empresas e fundos de investimento de capital de risco privados, representa uma ameaça para os países europeus e empresas, sofrendo com a necessidade de encontrar financiamento. Os "patrocínios" governamentais podem ser a solução, preenchendo as lacunas de investidores privados e servir de benchmark, criando um efeito "push-pull" de forma a atingir níveis superiores de capital disponível para as empresas. Nesta dissertação, dois modelos foram criados de forma a explicar a relação entre o efeito que os "patrocínios" governamentais têm na indústria de capital de risco e, como a mesma, poderá beneficiar com este tipo de investimento. Introduzindo novas e disruptivas variáveis nestes modelos poderá melhorar a importância que o capital de risco público tem na Europa e gerar contribuições futuras nesta área.

碩士
國立臺北大學
企業管理學系
106
In order to encourage newly innovative enterprises, the Small and Medium Enterprise (SME) Administration of the Ministry of Economic Affairs uses 10 billion NT dollar, funded by Executive Yuan national development fund, and accompanies with private venture capitals (VC) for joint investment to newly innovative firms. This study intends to investigate the optimal investment ratio by the government and VC. Based on “The Enhancing Investment Program on SME”, 540 annual observations out of 149 firms, ranging from 2011 to the 2016, are collected. The dependent variables are earnings per share (EPS), gross profit margin (GPM), net profit margin after tax (NPM), ROA and ROE; the independent variables are the government Shareholdings (GSH) and VC Shareholdings (VCSH). The statistical methods include correlation analysis and non-linear regression model, with separated estimation in different business development stages. The empirical findings are summarized as follows. First, there is no significant correlations between the dependent variables and the GSH; however, significant correlations exist between the dependent variables and the VCSH. Second, for the total sample, the GSH and VCSH have significant impacts on NPM, ROA and ROE. Regarding different investment stages, there is no significant impacts on corporate performance in both the seed period and expansion period. However, there are significant impacts of the GSH and VCSH on EPS, NPM and ROA in the creation period, indicating a better timing period for government and VC investment. Third, the non-linear U curve effect is inconclusive. The larger the GSH, the larger the corporate performance on EPS, ROA and ROE; The larger the VCSH, the larger the corporate performance on NPM, ROA and ROE. This study found that, under the same investment ratio, the effects of VCSH on corporate performance is greater than those of the GSH.

碩士
淡江大學
中國大陸研究所碩士班
95
This study is basicly derived from the Innovation theory of Schumpeter. It mainly focuses on the discussion of the innovative effects and the impacts on high tech industries being brought by the “Venture Capital Mechanism". In so, there are two main aspects being mentioned in this study, one is the cross-strait innovative policies, and the other one is the cross-strait venture capital association. Also, the experiences of the venture capital from other countries will be noticed in order to enhance the reliabilities; thus, to observe and foresee the development of the cross-strait high-tech venture capital mechanism. In terms of the roles and duties that the officials should be emphasized, there are as follows: 1.set the seed fund in order to attract the enterprises investing it during the period of “seed” and “innovation” 2.establish the favorable tax policies for being the incentives which attract the enterprises. 3.put importance on the legislation for preventing from the policy errors. 4.To complete the regulation about the high tech fund limitations including the company law. 5.set a rational and favorable high tech developing policies, providing with a sound investing environment including the educational atmosphere, related laws, and the cultivation of the venture spirits. In the current period, the high tech venture capital whether it should be internationalized or globalized is a crucial issue. Facing with the issues and related problems, officials should play a pivotal role in order to complete the venture capitalized relations; also, to catch up the global trend of it. Therefore, the high tech venture capital mechanism should be with a high efficiency of improvement and safety.