Abstract: Information asymmetry is the key reason for the existence and development of venture capital of high-tech enterprises The paper unifies moral hazard and adverse selection,which arise from information asymmetry, in one model,and analyses systematically the core capability and competition advantage of venture capital as it copes with these problems In addition,this paper discusses the influence of information asymmetry on the exiting approach of venture capital.

Key words: information asymmetry, venture capital, venture enterprise, core capacity, moral hazard, adrerse selection