Selection and Appleciation of Financial Lnstrument in the Venture Capital
|School||Xi'an University of Technology|
|Course||Technology Economics and Management|
|Keywords||Venture capital Financial instruments Choose mechanism Investment agreement|
Developing Venture capital is a way to the success of economic growth, through which a lot of countries promote theirs new and high technology industrialization. About 20 years ago, our country introduces venture capital. From then on, we have trained large quantities of innovative enterprises, promoted the technological progress, increased self-innovation and accelerated the industry transformation of our country. Today, the development of our country venture capital investment already entry the key stage of synthetical reform, thereby, in various fields the venture capital industry need perfecting and improving urgently which proposing the new request to the research. To keep up with this way, through studying the relevant theory of venture capital, this paper finds that in the special environment of venture capital, financial instruments have been given different form the functions of other investment fields. Financial instruments have a positive role in the control right transfer, incentive mechanism, optimizing of the financing structure etc. How to design, to use and to combine the different functions of the financial instruments in venture capital is the emphasis of this paper.At first, this article analyz financial instrument’s function in venture capital combination with theirs inherent characteristic from the theory point of view, and use mathematics method and case to analyze how to solve the choice and adjustment problem of financial instruments during the course of venture capital investment. Through structuring the optimized model of venture capital enterprise’s stage financing, present stock financing and debt financing transformed the fix quantify method during stage financing. At the same time, on the assumption that dispersed income and has know its probability distributioning, this article structure the mathematics model according to the target function of maximum enterprise’s value, analyze that uses bonds, or stock, or the convertible securities, the efficiency and the different that venture capital’s decision to take part in the management of the enterprise. Through analyzing the result, we can draw out the conclusion that the convertible securities contributes to solving the double-sidedmoral Morals Hazard problem.The article also draws out the methold of financial instruments pricing, deal structure designing and agreement perfecting from financial instruments point of view. Through the study on financial instrument, expects this paper can provides the theoretical basis on venture capital select the appropriate financial instrument, reach agreement, construct the valid administration mechanism etc.