A Venture Capital Portfolio Model considering the allocation of Capital Investment and management input

Considering the affection of the inputs of management and the investment venture capital in the choices of venture capitalists, this paper deals with the model of Venture Capital Portfolio added the inputs of management and investment. Assume that venture capitalists and venture entrepreneurs can reach an optimal contract, we derive management input influence coefficient function and discuss its characters. We also construct a general venture capital portfolio model and simplify this model based on variance analysis by defining an management input impact factor and an expected profit function of a venture capital portfolio affected by the management input. A numerical example shows that optimizing the allocation of funds and management input synthetically is important for venture capital portfolio.