A Research of Chinese Venture Capital's Influence on the Investment of Small and Medium-sized Scientific Enterprises: Evidence from Growth Enterprises Market

Venture Capital is an appropriate financing way for small and medium sized enterprises (SMEs). The paper puts forward the research hypothesis. On the whole, venture capital can ease the financing constraints, strengthen information disclosures and promote technical innovations of SMEs, especially scientific SMEs. This paper chooses 154 enterprises in the growth enterprise market (GEM) as samples and draws a conclusion that with the intervention of venture capital, SMEs' financing constraints can be eased, information disclosures can be strengthened and technology can be promoted in an appropriate way. Moreover, the paper also gives recommendations of investors and the government.