Innovation not only requires a relatively loose environment of fund supply, but also requires financing institutional arrangements that match the risk-return characteristics of innovative behaviors. Therefore, appropriate adjustment of the financial system is the key to Jiangsu's innovation and development. Compared with Zhejiang, Guangdong, Shandong and other provinces, Jiangsu has shortcomings in equity investment: the scale of equity investment is small, the scale of institutional management funds is distributed at a lower level, and VCs rely too much on the government and non-listed companies in terms of funding sources, the P/E Ratio of VC is relatively high, and there still exist a lot of room for improvement in the intensity of VC investment. Recommendations are as follows: guide the development of equity investment by increasing financial investment and giving play to the role of parent fund; promote the development of equity investment by cultivating investment institutions and optimizing mechanisms; and enhance the innovative development of equity investment in various regions by exploring cross-financing systems.
