Analysis on the Effect and Influence of Venture Capital on Enterprise Technological Innovation

Abstract

Innovation is essential to the development of a country. In recent years, my country's economy has developed rapidly and with high quality, and the demand for innovation has also increased rapidly. Technological innovation is a continuous and high-investment process. It has high requirements for corporate funds and professional talents. However, start-up companies have limited experience due to their own conditions, such as insufficient managerial experience and lack of funds. Will restrict the technological innovation of enterprises. Traditional financial institutions are more inclined to provide certain financial support to more mature companies, but it is difficult for start-up companies to obtain financing. Venture capital, as an emerging investment and financing tool, is more inclined to invest in innovative companies with higher development potential, and withdraw after the company goes public, so as to obtain higher capital appreciation. It is precisely because of the emergence of venture capital that many start-ups with development potential have helped many start-ups with development potential to solve the problems of financing in the early stages of development, and provided support and convenience for the technological innovation and development of enterprises.