The Construction Of The Venture Investor Protection In Venture Capital

Venture capital is an investment form mainly in equity to unlisted small and medium-sized high-tech enterprises with a view to get high profit during the final listing or sale,in both high risk and high return.Previous articles in venture capital refer to the actuality of our country's legislation, the limited partnership in venture capital and the system of venture capital withdraw and so on.There are hardly any articles about the protection to the benefit of the venture investor,even though there are a few that are not involved in a system.Therefore,with the development of venture capital in China,the research of the protection to the benefit of the venture investor should be emphasized.The subjects in venture capital include venture capital providers, venture capitalists and entrepreneurs.Among the three subjects,there are two principal-agent relationships.This article will mainly discuss the principal-agent relationship between venture capitalists and entrepreneurs. Well,the principal-agent relationship and the information asymmetry are the root that the benefit of venture capitalists could be damaged by entrepreneurs.Therefore,the benefit of venture capitalists and the benefit of venture capital providers are basically same.So the venture investor in this article includes the venture capital provider and the venture capitalist.In this article,from the necessity to protect the benefit of the venture investor,around the principal-agent relationship and the information asymmetry between the venture investor and the entrepreneur,the system to protect the benefit of the venture investor could have been brought up. This article is divided into four parts.The first part analyses the basic issues involved in the protection of the venture investor's benefit,including the necessity to protect the benefit of the venture investor.The last three parts elaborate the concrete measures to protect the benefit of the venture investor in venture capital.The second part analyses how to make some arrangements to the forms of venture capital to protect the benefit of the venture investor in venture capital contract.The third part analyses the venture investor should take greater participation in the entrepreneurial enterprise management to protect his own benefit after the injection of venture capital to entrepreneurial enterprises.The fourth part analyses protection to the benefit of the venture investor in different forms of venture capital withdraw.