Research on the Real Option Decision Model about Venture Capital Exit

The exit mechanism from a venture investment is the primary way the venture capitalist can realize a positive return on the investment. The main exit routes are initial public offerings (IPO), trade sale, buyback and write-off. It is an important issue for the venture capitalists to choose the most appropriate exit route. This paper sets up a real option decision model based on the comprehensive analysis of exit costs and benefits, the venture capital funds life, the venture capitalists cooperation willing, and other influential factors, in order to provide a scientific base for the exit decision-making.