A Research On The Syndication Strategy Of Venture Capital Field

The venture capital has already got good development in some developed nations and region, such as United States, Japan and Europe. Theories field in all countries also launched to this extensive and thorough of research. In China, venture capital has been growing over 20 years though, it still at its infancy course due to its root cause of lacking in-depth understanding of venture capital mechanism. High risk and uncertainty of return are the main characteristics of Venture Capitals. In order to decrease the risk and increase the profit, various strategies have been developed by venture capital companies and syndication has been a common strategy.The syndication of Venture Capital means that several venture capital companies invest the same period of the firm at the same time or at different time. The development of China's venture capital is late and faces a series of barriers, e.g. Non-normative of capital market, immaturity of market mechanism, legal faultiness etc. Therefore, there must be many issues when syndication is used by venture capital company, and must be deal with urgently. Herein, this paper begins with analyzing the syndication of venture capital investments, and comparing the process of the VC's development in china with the western countries', this dissertation points out the development trend of the research on syndication decision abroad, focuses on ternary Principal - Agent Relation in syndication of venture capital investments, and summarizes the advantages of syndication strategy and the factors which should be taken into consideration in using syndication decision, thus researching as the factor of experience'effect to VCs investment decision in detail.Through the research, the results are as following:First, proposing there are ternary Principal - Agent Relation in syndication of venture capital investments, analyzing the cause of"Follow"venture capitalist'"Free Ride"in syndication, and suggesting lessening the motivation of"Free Ride"by allocating the stock equity to motivate the"Follow venture capitalist".Second, summarizing the function of syndication in Venture Capital, and set a model for proposing that syndication can avoid the moral hazard between venture capitalist and Venture Firm.Finally, analyzing the factors that can impact on the adoption of syndication decision for venture capitalist, and setting a model on venture capitalist as his experience, analyzing the investment strategy in various cases by ranking the experience of venture capitalist into three levels。The research in this dissertation is a profitable exploration and theoretical reference to the using of syndication strategy for venture capital companies.