Notice of RetractionA Research on the Effect of Venture Funds in SMEs Financing

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

Since venture funds undertake large risks in SMEs financing, so they behave differently from other investors. Among many investors in SMEs´ financing, venture funds intend to seize the controlling rights and take supervising roles, which have important influence on the SMEs´ financing. This paper will first discuss monitoring taken by venture funds and then analyze the impacts resulted from take-over rights. The result shows: when SMEs´ total returns can be increased as a result of take-over by venture funds, take-over is the best choice, but if take-over decreases SMEs´ total returns, partial take-over may be the necessary choice for venture funds, especially when the SME is lack of money.