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The development strategy of Jiangsu coastal area is not only a province-level planning, it has become one of our national strategies. However, capital protection is the challenge facing economic development in Jiangsu coastal district. First, this paper transformed the established Cobb-Douglas Production Function to an expression of investment level in order to calculate respectively the investment level parameters for recent years. Then, the GM (1, 1) Prediction Model was used to predict the trend of investment level. The conclusion is that the capital demand of economic development in Jiangsu coastal district will increase year by year and that the private investment will become more and more essential. By analyzing capital demand of economic development in Jiangsu coastal region, our research manifests that it is feasible to establish an industrial investment fund in this district under the current contradiction between capital supply and demand.