Okay, here is the translation following your instructions: The story of entrepreneurship. Financial systems and institutional innovation

Author: Zhang Jun / Country: Mainland China
Publisher:
Publish Date: 2001-09-01
Features: It seems a bit strange to say, because financing has always been one of the most important issues for the survival and development of a business. Therefore, in today's economy, discussing financing issues can only repeat historical experiences. This is absolutely correct. When we face the skyscraper-filled New York Financial District, the London Financial City, Hong Kong's Central, or Shanghai's Lujiazui, we see large banks, major securities firms, and long-established stock exchanges. They represent the enduring nature of financing issues and, at the same time, symbolize the long history of institutional innovation in financing. For the development of the IT industry, financing issues will become even more challenging, as this industry involves greater risks and more severe uncertainties. Particularly, the development of the IT industry relies on private forces, on the growth and distribution of knowledge, making its development more grassroots-oriented. In this context, financing issues once again face institutional innovation. Now, we know that this institutional innovation is the emergence of "venture capital" (VCs) and the connection between venture capitalists and investors that has developed from it. Of course, there is also the rise of the stock market for emerging enterprises that we will discuss later. It is said that the earliest organized venture capital was by a few professors at Harvard Business School, who founded the "American Research and Development Corporation" (ARDC) in 1946.