Study On The Investment Mode Selection Of Private Capital Based On Entrepreneurial Enterprises

Abstract. This paper studies investment pattern evolution model under the condition of different risk and return of private capital for entrepreneurial enterprises firstly, from the structural contradiction that the entrepreneurial enterprises financing difficulties and the private capital investment channel narrow. According to the analysis of the evolution model, combining with the characteristics of private capital and entrepreneurial enterprises, designs the corresponding debt and equity model. In the first, the selected topic background and significance of this study are elaborated in the first chapter, the second chapter, and the correct scientific theoretical foundation is set up for this study by reviewing corresponding theory of existing research on the investment and financing mode.Then in the third chapter studies the investment and financing model selection problem of private capital investment entrepreneurial enterprise.According to the periodic characteristics of entrepreneurial financing demand, in-depth analysis of the characteristics and risk of the different developmental stages, respectively analyzes its start-up stage (seed and early stage) and late growth (extended period and mature period) of private capital and entrepreneurial enterprises investing and financing model choice of both parties using the evolutionary game theory. Obtaining evolutionary stable strategy after a lot of investment and financing mode game between both sides by analyzing and judging the replicated dynamic equation. Providing guidance and reference of investment and financing decisions for private capital and entrepreneurial enterprises in different development stages (start-up stage and late growth).Then in the fourth chapter studies the creditor’s rights investment model of private capital to entrepreneurial enterprises.Aiming at the evolution analysis result of the steady state of the mode selection in the third chapter, both sides choose the stable state of debt financing, build the private capital creditor’s rights investment model based on the interest rate risk, credit risk, analyzed the creditor’s rights financing mode selection problem of private capital and entrepreneurial companies from different angles.The funds price and investment share are considered based on the escrow company and investment company by the Stackelberg game equilibrium strategies, the Stackelberg creditor’s rights investment model is built based on third party. Providing a decision-making reference of investment and financing mode for private capital and investment company. At the same time creditor’s rights mode choice model of the bilateral can choose the interest constructed under the assumption the private capital and entrepreneurial enterprises to utility maximization as the goal. and the proportion of floating interest investment and financing the is received for private capital and entrepreneurial enterprises. Whether private capital or startup floating interest transaction proportion is synthetic changed as price variance and risk aversion. It is derived according to the theory of options trading related floating interest rates after the transaction price, found floating interest trading proportion of entrepreneurial enterprises is reverse to floating interest fund price, as floating interest trading proportion of private capital is synthetic to fixed interest fund price.Again in the fifth chapter studies the equity investment model of private capital to entrepreneurial enterprisesThe equity investment and financing mode selection problem is considered of private capital the start-ups. And investment returns and investment risk is received under the condition of common stock and preferred stock investment coexist. The relevant model was established, the corresponding equilibrium earnings per share is given. The yield of preferred stock problem is analyzed. Then private capital direct equity investments or indirect equity investment mode selection problem is considered in the case that investment companies provide advisory and fund management services. The investment scale and the earnings per share are discussed respectively when the investment company provides service through different channels (including only for direct equity investment, and at the same time in direct channels and indirect channels). The cost, service coefficient and revenue are analyzed, which provides basis of mode choice for private capital equity investment, and the influence factors of private capital equity investment gains is considered from the view of entrepreneurial enterprises’s demand. Finally in the sixth chapter summarizes the research conclusion of this paper, the innovation points and research prospects.