Research On Legal Issues Of Valuation Adjustment Mechanism In Venture Capital Repurchase And Withdrawal Mechanism

As the role of venture capital in the field of investment and financing has become increasingly significant,its impact on China’s capital market is increasing,and there are more and more voices in investment activities.The foothold and end point of venture capital activities are the return on investment when they exit.Among the various exit methods of venture capital,the repurchasing of share repurchasing generally appears in venture capital agreements with its universality and bottom-up nature.Correspondingly,equity repurchase terms that are essentially contented with gambling agreements are widely used because they have the advantages of managerial incentive effect,stable investment risk and extremely high negotiation flexibility.The gambling agreement satisfies both the investment needs of venture capital and the desire of start-up companies not to seek initial financing from corporate control rights,which is of great significance to the development of risk ventures in China and to the healthy growth of capital markets.However,for this investment method from abroad,it is not completely compatible with China’s current laws and regulations.Regardless of its nature or effectiveness,it is still difficult to make conclusive statements.The type of contract that has been developed so far has been in the capital market.The trade-offs between trading risks and efficiency of returns have made a tremendous contribution,and therefore their demands for legitimate legal status and definite legal effects are increasing.Therefore,exploring the legal status,nature and effectiveness of gambling agreements is not only a theoretical development but also has significant practical significance.This paper starts from the inconsistency of the current legal status and market position of the gambling agreement appearing in the venture capital contract.Based on the current research results and combining the judicial and academic practice in our country up to now,this type of contract is discussed in both theoretical and practical aspects.The legal nature and effectiveness.By comparing the nameless contract of gambling agreement with the existing shinning contract,conditional contract and guarantee contract similar to its appearance,it explains why it can be widely recognized and applied in the capital market and clarifies that it is not part of the current typical contract.The legal attributes;through the "Company Law","Contract Law" based on the perspective of the legal system and the arbitration,practical case studies of arbitration cases,to distinguish its content in the current legal environment should have the legal effectiveness and status.This leads to the current obstacles in the establishment of risky investment agreements and the theoretical misunderstandings that should be avoided,and then attempts to explore from the perspectives of lawmakers’ legal norms,the judicial person’s trial methods,and risk evasion of gambling agreement participants.The development of the form of gambling agreement in the venture capital scenario is the development of the future capital market.