Research On Venture Capital’s Impact On Venture Growth Performance Based On Contract And Trust

Venture capitalists which invest potential new ventures only, makes a great contributions to promoting the technological progress and the economy. As a special form of investment, it has received extensive attention of the researchers from its birth. A large number of successful cases happen in recent years inspires the scholars’ enthusiasm. Contracts is an important arrangement between venture capital and the enterprise, and has a direct influence on performance. It includes the neoclassical contracts and relational contracts. The former makes the arrangement by legal document mainly, and the latter makes the informal arrangement through mutual understanding. At the same time, trust which is the, has a wide influence on the performance as well and is a mechanism of governance we can’t neglect. So, the concepts of contracts and trust take an outstanding position in the field of venture capital and construct the important contents in this field and the researches of the enterprise’s growth.Based on literatures, the experts’ discussion and the interview, the research designed a questionnaire. Then we sent out and finally withdraw211copies of effective questionnaire. The results show that the level of neoclassical contract and relational contract have a positive effect on the growth performance. It affirms the contract’s function. However, the neoclassical contract and relational contract don’t interact each other in explaining the growth performance, so there is not substitution or complementary relationship between these two kinds of contract. Meanwhile, the trust promotes the growth performance as well. Nevertheless, the contract and trust don’t strengthen or weaken mutual influence on growth performance. In other words, when explaining the influence on growth performance, the relation of substitution or complementary between contract and trust doesn’t exist.This essay chooses contract and trust as breakthrough point, and explores their influence on the enterprise’s growth. It is a supplement for the existing research. Moreover, it makes a contribution to the theory of corporate investment and financing and the theory of venture capital.