China Investment Banking, Venture Capital Role

Venture capital investment is a kind of activity that the investors give financial and management support to newly established corporation that is growing fast and having great competition potential. It is systematic investment process and needs specific institution's service. What venture corporations need is not only capital but also the experience of stock and capital management. Investment banks have mighty industry and project research capability and could provide venture corporations with information, management, finance and capital support, so investment banks could effectively expand the venture capital investment activity. This paper studies the theoretical and practical problems, proposes the theoretical analysis and concrete suggestions about how investment bank carry out the venture capital investment operation according to our investment banks' characteristic.This paper analyzes the characteristic of partnership organization model and the practical obstacle which cumbers investment bank's carrying out the venture capital investment activity, and figures out that in the beginning stage investment bank should adopt the corporate organization model. Then, when the venture capital investment corporations accumulate certain experience, it can transfer to partnership organization model.Venture capital investment pursues the safety, liquidity and increment of capital, and the purpose of investment is to get higher income based on the investment risk. How to evaluate a investment project exactly is very hard. We set five first rate index and forty-one second rate index to constitute the synthesis investment bank's venture capital investment project evaluation system to solve the venture capital corporation's project selection problem.This paper establishes game theory analysis models about the venture investors vs. the venture capitalists and the venture capitalists vs. the venture entrepreneurs separately, and discusses the how to reduce the agency risk and establish the venture capital corporation's risk control...