This　study　applies　real　options　approach　to　incorporate　time　preferences　of　the　entrepreneur　and　venture　capitalist　into　venture　capital　optimal　investment　timing　research　framework,　and　analyses　the　effect　of　homogeneous　and　heterogeneous　time　preferences　on　the　venture　capital　entry　timing,　equity　allocation,　and　cash-on-cash　multiple.　The　results　show　that　the　higher　time　inconsistency　degree　of　the　entrepreneur　or　venture　capitalist,　the　later　venture　capital　enters,　which　is　contrary　to　the　effect　of　both　parties’　expected　beliefs;　the　optimal　equity　allocation　depends　on　the　relative　time　inconsistency　degree　between　the　entrepreneur　and　venture　capitalist,　and　the　party　with　the　higher　time　inconsistency　degree　is　more　willing　to　demand　equity;　under　time-inconsistent　preferences,　the　cash-on-cash　multiple　of　the　venture　capitalist　only　depends　on　his/her　time　inconsistency　degree,　while　the　cash-on-cash　multiple　of　the　entrepreneur　is　related　to　the　time　inconsistency　degrees　of　himself/herself　and　the　venture　capitalist.　This　study　provides　theoretical　reference　and　practical　guidance　for　encouraging　venture　capital　to　“invest　early,　invest　small,　invest　in　science　and　technology”,　and　improving　the　financial　support　innovation　system　in　China.　©　2023　Systems　Engineering　Society　of　China.　All　rights　reserved.