Research Of Industry Heterogeneity And Stage Investment Relationship

Venture capital is the "engine" of economic growth, and plays an important role in the industrial structure optimization and promotion, especially in the aspect of innovation and industrialization of high-tech. We can see that venture capital not only provides the development funds which needed by the enterprises, but also afford value-added services to help entrepreneurs do better in management. However, it is a high-risk activity and because of people’s bounded rationality and limitations such as asymmetric information, which makes it is easy for venture capitalists and entrepreneurs to confront with a typical "principal-agent" problem. Whether venture capitalists based on the limited information, dynamic to the assessment of the risk of investment projects, and make the appropriateg the investment decision, will relate to the success or failure of the investment.In order to reduce the principal-agent problems arising from the asymmetric information, venture capitalists often use staged investment. The fact is that there exist differences among the staged investment in variety of industry. This article stands in the angle of venture capitalists, and mainly studied the different staged investment rounds in different industries: First ly, it gives a general picture of present situation about venture capital development and its connotations and characteristics as well, from which it comes up to the core point. Then through the analysis of literature review about venture capital, especially the moral risk and staged investment, we figure out the thinking model in regard to investment in stages. Finally we construct a two-staged model from the angel of project uncertainty and tangible assets in different industry. According to the analysis of three kinds of investment ways, we come to the conclusion about high-tech industry and traditional industry investment.Finally on the basis of what we did above, we get the relevant conclusion and of course there is some deficiencies in this article due to my limited time and ability. Given the actual situation of economic development in China, we also put forward some suggestions for the development of risk investment...