Study on the Guiding Effects of the Government Venture Capital Guiding Fund Based on Markowitz Mean-Variance Model

Abstract

With the implementation of innovation and entrepreneurship development policy, the government venture capital guiding fund has shown a trend of explosive growth in recent years. To study whether the government has a good policy effect on the venture capital market after setting up the guiding fund and how to guide the policy effect of capital, that is whether to guide the social capital into venture capital enterprises after government has set up the guiding fund, turns to be significant. In this paper, we had been used Markowitz Mean-Variance Model to analyze the optimal portfolio selection of the Market participants before and after government established the guidance fund . The results show that after government set up a guiding fund, the capital supply of venture capital market will be increased. This mechanism is achieved by influencing the expected benefits and risks of investors.