Under the two assumptions of rational investors and enough competition,we come up with the R-v curve of Venture Capital market,and based on which,the theory to utility selection of investors is established And then we apply the theory to analyze the effects of a new type of tax-insurance tax We do hope something we have done here is helpful to the development of Chinese Venture Capital Industr

It fi- nances by means of unemployment insurance tax,which legislative and implementation protection level is very high.

The paper analyzes the main problems of China s present tax system on insurance from both supply and demand, and argues that it would hinder the development of insurance.