Investment Strategy Research On Venture Capital Institutions Based On Option-game Theory

Venture capital ,the equity capital, is invested by professional financiers, in emerging, rapidly growing and great competitive potential enterprises. Since 1946, the first venture capital firm, "U.S. Research and Development Corporation" is established, venture capital firm quickly swept the global by many successful cases of investment and a huge boost to the economy. Meanwhile, our government departments, research institutions, industry, finance and others are attracted by the unique role of venture capital. Venture capital industry has gone through the past 50 years, and academics and businessmen to venture capital conducted extensive research and exploration. However, the changing new environment constantly challenged the venture capital industry's survival and development. Based on the venture capital institutions of rising competition, this paper researches the developing of the venture capital institutions and evolution of investment strategy.Firstly, this article compares real options theory with traditional investment methods, and finds the shortage of traditional investment methods and the advantages of real options theory. Then, this article analyzes the investment strategy of venture capital institutions under the condition of competitive mechanism existence by using the game theory. Next, under Strength of symmetry and strength of asymmetry condition ,this article studies the strategy of venture capital institutions which should be eventually adopted by using evolutionary game theory. The results showed that: the existence of competition will make venture capital institutions speed up the timing of investment risk projects. Finally, this article analyzed and studied the optimal investment strategies of venture capital institutions by using classical game theory and evolutionary game theory and find out the evolution of venture capital institutions stable strategies under the venture capital strength of symmetry. What's more asymmetry of the strength of venture capital organizations have also been researched in theoretical, and s some recommendations on investment strategy are also given.