Valuation Adjustment Mechanism And Venture Capital

Venture capital(hereinafter referred to as VC)has accelerated its development in China for nearly a decade.Through accelerating the transformation of scientific and technological achievements into real productivity,it has promoted the rapid development of high-tech enterprises,and thus led to the development of the whole economy.As a result,VC is hailed as "the engine of economic growth".VC meanwhile,is also a high-risk activities,mandatory norms in our country often cannot provide targeted protection for venture capitalists,Valuation adjustment mechanism(hereinafter referred to as VAM)as a commonly used VC contract tool,as a financial innovation in the field of VC is increasingly valued.VAM aimed at deciphering enterprise valuation,investment law is not perfect and poor capital market environment,etc.In this context,this paper makes an in-depth analysis of VAM in VC and the potential risks it brings to the venture investors and enterprises,and discusses how to effectively use VAM.This article from the concept of VC,VAM,the connotation and essence of by introducing Morgan Stanley China mengniu dairy,such as"bet agreement first case"bet on the agreement of the specific case analysis,layer upon layer reveals the VAM application in the process of investment and financing,effect and the pros and cons,for the enterprise investment and financing in the VAM of risk aversion to provide measures and Suggestions.At the same time,this paper also draw lessons from the United States and other developed countries in the VC practice gradually formed a set of unique risk investment,the company contract as architecture protection mechanism of the venture capitalist,"the entrepreneurial venture investment model contract" in the United States of"VAM",is based on the terms of the design,from the micro perspective,to clarify how the entrepreneurial venture investment model contract in the United States about concerning the rights and obligations of the contract arrangement of related terms,reasonable design and application of Chinese domestic legal environment,so as to explore the entrepreneurial venture investment in the arrangement of the contract system for China's entrepreneurial venture funding.In order to guarantee the healthy development of the VC industry,this paper puts forward that suggestion in the company law should allow a limited liability company set preferred shares,shall be applicable to the contract law should be combined with the commercial used to measure a bet against the interests of the parties,at the same time set by the industry association model contract specifications,regulatory guidance is given priority to,set up the mechanism of benign letter group,give the market more flexibility.