Convertible Bond Risk Investment

On the trend of flourishing world knowledge economy today, hi-tech industry has become into the hotspot of global economy.Venture Capital as a kind of high risk, high growth, and high expected return on the development of high-tech industry plays a vital role. Development of venture Capital is a road to success of promoting high-tech industrialization and the economic growth of a road to success in many countries; China has trained many innovative enterprises since imported investment risk for more than 20 years, and made positive contributions and beneficial exploration on promoting technological progress, independent innovation and industrial adjustment. Meanwhile, China's venture capital needs improving in various aspects, especially for the risk of the enterprise financing problems, and convertible bonds in the securities market of our country, the rise of financing for risk provides a feasible way. It can make the funds required for the enterprise to obtain risk, and successfully achieved by seed, business expansion, the mature period to the cross.From the Angle of the theory, firstly, expounds the development and operation process of venture capital. Secondly, based on the theory of principal-agent, financing, modern control and contract theory, and combined the characteristics of convertible bonds and venture capital, analyze the feasibility in venture capital. Finally, using mathematical and case analysis, discusses how to put the convertible bond to venture capital. The paper also from practical application perspective, the convertible bonds are at venture capital in pricing method, design principles and provisions suggestion.Through the study, we hope that has inspiration to venture capitalists and venture entrepreneurs to use convertible bonds in the investment contract and achieve a win-win result.