Research On The Contractual Relationship Of Venture Capital

The 21st century is the era of knowledge economy, high-tech industry plays an important role in the development of an increasingly knowledge-based economy. High-tech industry has become China's top priority. From the point of view, the inherent characteristics of high-tech enterprises is a risky business. It needs invest a lot of money from the high-tech products R & D into results, and fraught with risks. It is difficult to obtain from the general investors investment, the banks and other financial institutions in general. Thus a lot of high-tech companies are facing difficulties in financing issues. The production of venture capital just makes up this gap, which takes up the mission of promoting high-tech industrialization and becomes a bond between technological achievements and market.Venture capital has increasingly becomes the world theorists and the attention of. economists.However, in China's current background, the development of venture capital has obstruction. Venture capitalists often hold more shares in order to achieve the objective value-added venture .It is difficult for the risk entrepreneurs and the venture capitalists to agree on the valuation of intangible assets priced ,if too high, venture capitalists not, if is too low, the risk of entrepreneurs do not willing to, which results that excessive risk-investor-owned have a large number of leisure stagnating, and subject to restrict on capital bottlenecks. How to solve the issue from the valuation of the intangible assets. The key issue is to design a more reasonable risk investment mechanism, a reasonable proportion of the allocation of funding. and promote the venture capitalists and entrepreneurs reach agreement,Based on the convertible debt's double incentive and restrictive role,establish a conditional-free compensation convertible debt investment model, Solve the venture capitalists and entrepreneurs hard to reach an agreement on assessing entrepreneurs'intangible assets, thus not be able to reach an investment agreements ,provides a specific operational investment mode in the initial start-up. The results show that the conditional-free compensation Convertible debt not only contribute to the risk of investors and entrepreneurs to reach agreement,also ensure the success of the projects.