The Win-win Mechanism Study Base On Three Parties Of Venture Capital

In venture capital system, capital investors are a real vendor of capital, risk entrepreneursneed capital to process program, but they do not deal directly. In this paper, the venture capitalagency relationship including investors and venture capital firms and venture capitalcompanies and venture firms. The venture capital firm involved in the whole process as theentire venture capital intermediaries, venture capital financing, investment, management,operation of exit, at the core of risk investment system. Dual agency relationship between thethree, to achieve a win-win situation, it is necessary from the perspective of the three partiesto explore win-win mechanism. Therefore, from the point of view of the three parties todiscuss the management of investment risk has important practical significance.The author intends to proceed from carrier angle, analysis and research on the win-winsystem between investors and venture capital firms and venture capital enterprises andventure firms:1. Risk enterprise.2. Venture capital, directly or indirectly, for the equityinvestment capital, the general situation of monetary fund and technical support situation.3.Venture capital investors.4. Venture investment institutions (VCI). The basic theory,including the theory of asymmetric information, agreements and principal-agent theory, riskmanagement theory. The use of standardized research analysis the risk investment aspects ofrisk management objectives, principles, and risk category, and research the tripartite partyspecific risk management measures, and the reference to some empirical case to support theconclusion of the relevant arguments. The analysis of the three stages of the risk management,starting from the time when the party point of view, according to the cases analysis, factorsanalysis and correlation analysis approach.The main content of this article includes the following sections:The first part is the theoretical basis. Introduces the basic concepts of risk investment andrisk management, analysis of the main risk types of venture capital as well as the causes;venture capital risk management principles, procedures, methods were summarized. The second part: the analysis of the relationship of the three parties in the venture capitaland research. The associated capital investment in the three parties in the interests of investorsto be investors the incentives and constraints of the relationship between investment riskdiversification relative to investors in terms of worse, the interests of both objectives is tomaximize capital appreciation for target three areas studied. Elaborated under asymmetricinformation and moral hazard and adverse selection risk is a fundamental reason causing thegame in the three parties in the game, investors need investors incentive constraints in parallelwith a series of measures to ensure the realization of the premise of win-win.The third part is the study of the mechanism of investors and venture capital firmwin-win. This section describes the incentive constraints measures need to be taken by theinvestors in the venture capital firm, and draw limited partnership by analyzing andcomparing the two sides to achieve a win-win situation, to reduce the risk of the bestmechanism to achieve maximum benefits.The fourth part of the study on the mechanism of risk investment institutions andventure firms win-win. This section describes the measures need to be taken by the investorrisk enterprise incentives and constraints, the two sides in the investment stage and win-winmechanism convertible preferred stock or convertible bonds to institutional and exit stageneed Points discuss win-win mechanism measures Ideally IPO.