Existing literature suggests a strong relationship between a vibrant venture capital market and an active stock market: venture capital flourishes when venture capitalists can readily exit from successful portfolio companies through initial public offerings (“IPOs”), and IPOs are in turn...

This chapter focuses on the development of non-bank financial institutions, particularly venture capital (VC), angel capital, private equity, foreign funds and their role in funding entrepreneurial ventures in China. It examines the exits of VC-backed companies through IPOs and acquisitions. It...