Research On Exit Decision Of Venture Capital In High-Tech Enterprises

The rapid development of high-tech enterprises can not come true without venture capital's participation and support, and the effective development of the venture capital industry depends on the unimpeded exit channels. The exit of venture capital is the substantial step of the whole operational process of venture capital, which is crucial to the success of venture capital. The venture capital exit is a systematic project, which includes the choice on the exit ways, the exit time, the exit degree, the exit places and so on. But the choice of the exit ways and the exit time is the two most important problems in the decision-making of the venture capital exit. The influencing factors of the venture capital exit are various. There are not only macro factors, but also micro factors. As a result of different utility functions and different preferences, it causes the conflicts of interest in the selection of the exit ways between the venture capitalist and the entrepreneur. But it can be resolved through the rational allocation of exit control rights, in order to achieve Pareto optimal selection of the exit ways. The optimal allocation of control rights can be realized in two ways: the contract agreement and the selection of financial instruments. In fact, the choice of the exit time is a process of a dual selection, namely, exiting immediately or continuing to have the venture enterprise. The venture capitalist that chooses to continue to have the venture enterprise is also aimed at selecting the best time to exit. Based on the dual selection theory, this paper establishes a decision model on the exit time of venture capital, and then carries on a simulation analysis with a case by using the model. The simulating case explains that the optimal decision-making of the venture capital exit is the combination of the best exit time and the best exit way.