Study on the Incentive Model between the Venture Investor and the Venture Capitalist Based on the Principal-agent Relationship;

Since many venture capitalists operate one risk investment item for venture investors,it may fail to bring evey one into full play.

Venture capital is an organism which is made up of venture investors, venture capital firms and venture enterprises.

Based on the incentive and restrictive role of convertible debt,this paper establishes a investment model on convertible debt with conditional-free compensation,and solves an disagreement between venture capitalists and entrepreneurs caused by the assessment of entrepreneurs\'intangible assets,and provides a specific operational investment model in the initial start-up.

In VC-backed technology-intensive firms, ownership allocation between entrepreneurs and venture capitalists is far from symmetric with that of non-human capital contributed by the two parties.