Venture capital market development: Chinese experience and the possibility of its application in Russia

Venture financing is one of the main instruments for attracting financial resources for high-tech and high-risk production at the early stages of a company’s development. Despite the importance of venture financing for the Russian Federation in the context of unfavorable external conditions, sanctions and the need to develop its own production, the Russian venture financing market occupies an extremely small share of GDP. The experience of other countries, which purposefully created strategies for the development of this market and the creation of comfortable market conditions for companies, can serve as a basis for the development of the venture capital market. Based on the analysis of different countries, their approach to venture capital financing and the performance of their markets, it is found that China is the most suitable country to adapt the experience. China has successfully implemented a venture capital market development strategy, as evidenced by its high per capita venture capital financing rate. The author analyzed the thirty-year history of venture capital market development and highlighted the tools that were used by the Chinese government to create favorable market conditions for the venture capital market. The paper also considers the possibility or impossibility of adapting these instruments in the Russian market.