Analysis of Venture Capital Entry and Withdrawal from the Perspective of Information Economics

Abstract

Venture capital of institutions originated in Western Europe and flourished in the United States. Later, it was introduced to Zhongguancun by a group of Chinese students working in Silicon Valley and has been developing in China ever since. At present, it has entered a rapid development stage in China, making related issues more and more widely concerned. This paper first presents a brief introduction to the definition and characteristics of venture capital, and expounds the necessity and importance of its development. It is believed that improving information conditions will effectively reduce the risk of venture capital, thus addressing the difficulty of venture capital entry, and the way to withdraw venture capital depends on the degree of capital proliferation and information conditions.