Stage Investment Cost and Adding Investment Triggers in Venture Capital

A combination approach based on real option and CAPM model is presented for illuminating the value of staging investment in early-stage high-technology growth-oriented companies. Process of stage investment has been simulated by Cossin's mix option model, and supplemented investment triggers and investment cost have been obtained. Compared with one-off investment, it is evident that stage investment cost is lower than that of one-off investment, as well as risk.