Empirical Study on Causal Analysis of Present State of Venture Capital in China

Venture capital (VC) is a class of investment in those corporations with high growth potential high risk and high returns. A lot of studies have showed that the development of VC can not only propel the development process of high-tech industry of a country or region, but also can accelerate the industrial upgrade and transformation. Affected by a variety of factors, such as investor, exiting mechanism, talents, the legal system environment, intermediary institutions, however the development of venture capital in China is slow. In this paper, based on these influence factors, we have done the questionnaire survey on 356 experts and professors in this field from seven provinces which are divided into drearily active entrepreneurial region, less active entrepreneurial region, active entrepreneurial region, more active entrepreneurial region by Global Entrepreneurship Monitor (GEM). The main influencing factors which cause the present condition of venture capital in our country are determined by making use of Analytical Hierarchy Process. In the end, the corresponding countermeasures for the further development of venture capital in our country are proposed.