In view of the adverse selection and moral hazard problems and from the perspective of venture investor, an incentive contracts model for venture capitalist is set up based on the principalagent relationship in this paper. This model differs from traditional incentive contracts models in considering venture capitalist’s own investment in venture funds and an observable variable for venture investor. The theoretical research shows that the contracts model can raise the incentive intensity and increase venture investor’s expected income. The incentive contracts model is helpful for venture investor to choose the venture capitalist of high ability and inspire the venture capitalist to work hard after signing the contracts and is effective to solve the adverse selection and moral hazard problems. Based on this model, venture investor can establish a reasonable incentive contracts for the venture capitalist.