Abstract: Venture Capital not only invests the financial capital in Venture Firm,but also supplies the value-added services to develop the Venture Firm.Therefore,it could be said that the development of the Venture Firm is the result of Venture Capitalist and Entrepreneur’s effort.However,there are serious Principle-agency Problem in the development of Venture Firm due to the particular information structure.Double-side Problem is the main moral problem.The equity structure is a way to deal with this problem.This article structures a model between the equity structure and the Double-side Problem in order to design optimal equity structure on the basis of equilibrium between the effort’s benefit and the cost.

Key words: venture firm, entrepreneur, venture capitalist, double-side incentive, equity structure