TRANSFORMING ENTERPRISES THROUGH VENTURE CAPITAL: A COMPREHENSIVE ANALYSIS"

Abstract

Venture capital plays a pivotal role in fostering enterprise innovation by providing essential financial support and post-investment services. In today's dynamic business landscape, it has become a cornerstone of enterprise innovation system development. This study delves into the profound impact of venture capital enterprises in Qingdao, China, on fostering innovation within the high-tech industry. Statistics reveal that the majority of enterprises registered in China's domestic market boast venture capital/private equity backgrounds, indicating the significant role of venture capital in driving innovation. Notably, computer technology, information technology, and medical and health processes are sectors where venture capital has made substantial investments. Beyond financial backing, venture capital firms actively engage in the management and operation of their portfolio companies, offering valuable support and supervision to ensure the standardized functioning of research and development, production, internal controls, and other crucial activities. This systematic analysis of venture capital's role in fostering innovation is instrumental in guiding both venture capital practices and enterprise innovation initiatives, ultimately contributing to the overarching goals of innovation-driven development and high-quality economic growth