Abstract: In the course of transforming technology achievements,there is asymmetric information between high-tech firms and investors.Asymmetric information can lead up to adverse selection and moral hazard.The adverse selection and moral hazard make high-tech firms be confronted with financial obstacle.The paper has studied how asymmetric information influenced financing of high-tech firms in the course of the transforming technology achievements,and proved that institutional investors in private equity market would overcome asymmetric information,meet fund requirement of high-tech firms.

Key words: high-tech firm, transforming technology achievements, asymmetric information, financing, institutional investor