An Economic Analysis Of Venture Capital Investment

By employing risk theory, game theory, informational economy, fuzzy decision theory, microeconomics theory, this paper tentatively studies the theory and the empiric example of microscopic operation mechanism of venture capital investment. This research includes 3 aspects, namely the operation of venture capital investment and information economics, the theory of risk revenue of venture capital investment, the mechanism of sharing risk of joint investment and investment portfolio. With these researches, this paper tries to discuss the operation mechanism of venture capital investment from the perspective of microscopic and quantitative angle, and summarize the regularity in order to provide some reference for the complement of theory of venture capital investment which is fit for our country, then widen and develop the economy in the operation of the field of venture capital investment. On the whole, this paper includes 4 parts:The first part is an information economics analysis of venture capital investment. First of all, this part sets up the information searching model of venture investment company's choosing projects under the condition of asymmetric information, then this part demonstrates the limitation of information searching and provides the thought of information risk prevention by contriving efficient contract. Secondly, this part analyzes 3 information asymmetry in managers' market in venture capital investment, then provides some policy suggestion to develop the managers' market of our country. Also, this part sets up a dual principal-agent model, and makes some conclusions by mathematical induction.The second part is an analysis of risk revenue of venture capital investment. Firstly, this part sets up a multi-phrase dynamic game model, then discusses the status quo of venture capital investment in our country with the equilibrium solution of game. Secondly, this part analyzes the game of the risk revenue of venture capital investment from the point of non-price competition and the selection of innovation mode, then provide some thoughts and suggestions to develop high-tech enterprise in our country.The third part analyzes the mechanism of sharing of risk in joint investment. Firstly, this part discusses the mechanism of the sharing of risk and revenue in joint venture capital investment. Secondly, this part provides the theory of risk unconservation and demonstrates it strictly. Thirdly, this part throws light on the risk unconservation in venture capital investment with hypercyclic theory, and provides the paradox of risk unconservation when hypercyclic is not valid. At last, this part sets up a multi-layer fuzzy decision model and discusses the risk and revenue of different people with different risk preferences.The fourth part is an empiric analysis. This part takes Porter Company as an example. The theory of project selection, manager theory and the theory of joint investment are embodied in the analysis of this example. This part tries to combine the theory with the practice.