Binhai New Area "private Official Support." Venture Capital

Being the front on Tianjin reform and open-door practice and the maximum economic growth point, the Bin Hai New Area has shouldered the significant historic tasks in promoting the regional economic development in Tianjin and in Bohai Coastal Areas of China, ever since it has been treated as the nation-wide new development area. Development of the hi-tech industry will become the major impetus in promoting the economic growth in this area. During the development process of the hi-tech industry, the well-matched venture investment has also been developed rapidly. It is practically proved that venture investment is one of the most powerful financing channels during development of the hi-tech industry, with a tremendous impetus for development of the hi-tech industry.Basing on the study of abroad articles concerned, this paper comments on venture investment in the "private-run and government-subsidy pattern".This article started with the advanced experience of foreign hi-tech enterprise utilizing venture investment. At the beginning this paper discussed the resources and operation of venture investment and made an analysis of principle-agency relationship in venture investment system by game theory. Then it used a whole chapter to introduce the methods to guard risk with Stockholder's rights option mix with reward system and reputation incentive mechanism. Therefore, this paper put forward management buyout amid at the system of withdrawing.Centering on the above analysis, Binhai new area should make up his mind to accelerate the venture investment, and by this way boost his hi-tech industry.