What are venture capital and venture capital funds

Venture capital (venture capital) is abbreviated as VC is a conventional concept with specific connotations in China, in fact, it is more appropriate to translate it as venture capital. Venture capital in a broad sense refers to all investments with high risk and high potential returns; Venture capital in the narrow sense refers to the investment in the production and operation of technology-intensive products based on high and new technologies. According to the definition of the National Venture Capital Association, venture capital is a kind of equity capital invested by professional financiers in new, fast-growing enterprises with great competitive potential.

Venture capital** refers to a group of individuals with expertise and experience in technology or finance, and who invest exclusively in companies with growth potential and rapid growth. Venture capital is an investment activity that supports start-ups and provides equity capital for unlisted companies, but does not aim to operate products. Venture capital is mainly a high-risk, high-yield industry that engages in capital management in the form of private equity, and pursues long-term capital appreciation by cultivating and guiding enterprises to start a business or start a new business.

In general, venture capital firms do the following: * Invest in emerging and fast-growing technology companies; * Assist emerging technology companies in developing new products, providing technical support and product marketing channels; * Take the high risk of investment and pursue high returns; * Invest in these emerging technology companies in the form of equity; * Provide value-added assistance through actual participation in business decision-making; * Have a long-term investment plan;

When venture capital is different from venture capital, one has to repay the principal and the other is dividends!

There are many risks in venture capital, such as opportunity risk, capital risk, management risk, team risk, for example, if you select a project in the market, when you run it, you will actually find that the project can not help you get greater benefits, only because the project has been run, so you can't change it, so you will miss the opportunity to grasp other projects, capital risk is the capital chain, maybe it will be broken, and the project will be over. Management risk is due to the influence of the manager's individual qualifications and level, once the wrong decision is made, it may affect the survival of the whole team, and team risk means that when your team competes with other teams, maybe your team members will betray the whole team.

Venture capital risks are opportunity risks, market risks, capital risks, management risks, environmental risks, and technology risks, so venture capital needs to be cautious.

Venture capital is the investment in a start-up company in the form of shares. The benefits of venture capital are entirely borne by themselves, and if the startup company performs well, it can get a return on investment, otherwise it may lose all its money, and the risk is very large.

Venture capital** is defined as investing in incremental equity in unlisted businesses at all stages of entrepreneurship to provide the capital they need to grow.

Venture capital, also known as venture capital, is also a type of private equity investment. Mainly invest in equity investment in unlisted growth enterprises at various stages of entrepreneurship**, the business policy of venture capital is to pursue high returns in high risk, with special emphasis on the high growth of entrepreneurial enterprises; Its investment targets are those companies that are in the initial and development stages of the start-up and development stage that do not have the qualifications for listing, or even companies that are only in the process of being conceived. Its investment purpose is not to hold a controlling stake, but to obtain a small amount of equity, and to promote the development of start-ups and increase capital appreciation through financial and management assistance.

Once the company develops and can be listed, the venture capitalist will obtain high returns by being in the market. Specifically, the operation of venture capital** also has the following characteristics:

1. From the perspective of investment objects, they are mainly unlisted Shenyuan growth start-up enterprises.

2. From the perspective of investment methods, equity investment is usually adopted, and controlling investment is rarely adopted.

3. From the perspective of leverage application, it is generally not used to invest with the help of leverage, and the free funds of the first class are invested.

4. From the perspective of investment income, it is mainly based on the equity appreciation brought by the value creation of the invested enterprises.

Venture capital is a type of venture capital that is specifically designed to invest in start-ups. Its main goal is to help start-ups grow and grow rapidly by providing funding and resource support.

Venture capital** is typically made up of a group of investors who pool their funds and co-invest in promising start-ups. These investors can be individual investors, angel investors, venture capital firms, or other institutions.

Venture capital works in such a way that managers screen and evaluate potential investment projects, and select companies with innovative, scumbag market potential and feasibility to invest in. Once the investment decision is made, the manager will enter into an investment agreement with the start-up to provide financial and other resources to help the company achieve its development goals.

Venture capital** typically provides financial support at different stages of a company's growth, including seed rounds, angel rounds, A rounds, B rounds, etc. In addition to financial support, the manager will also provide strategic guidance, business development, talent introduction and other support to help enterprises solve various problems in development.

The return on investment of venture capital** mainly comes from the successful exit of the investment project, such as the listing of the company, the acquisition or the remorse for the equity transfer. When an investment is successfully exited, the manager receives a corresponding return and distributes it to the investor.

In conclusion, venture capital is a type of venture capital that is specifically designed to invest in start-ups, helping businesses to grow rapidly by providing funding and resource support.

The so-called venture capital, also known as entrepreneurship, refers to those who are engaged in venture capital. VC for short, venture capital (VC), also translated as "venture capital" in China, is a new type of investment method that is widely popular in the world today.

Venture capital absorbs the funds of institutions and individuals in a certain way, and invests in those emerging, rapidly developing and huge competitive enterprises that do not have the qualifications for listing in the form of equity investment, so as to help the invested enterprises become mature and obtain listing qualifications as soon as possible. Once the company is listed, the venture capital can recover the funds through the transfer of equity in the market and continue to invest in other venture companies.

1. Investment objects: mainly small, emerging or unestablished high-tech enterprises that do not have the qualifications for listing.

2. Investment cycle: general risk capital is 2-5 years.

3. Return on investment: quite high, with an average of 20%-40%.

4. The purpose of investment: it is to inject capital or technology, obtain part of the equity (not for holding), promote the development of the invested company, and make capital appreciation and profit.

5. Profit method: listing or transfer of equity (exit mechanism).

6. Investment stage: the initial stage of enterprise development and expansion stage.

In the process of developing venture companies from scratch and from small to large, venture capital** not only provides them with funds, but also has a great impact on their corporate governance structure. Venture Capital** Participation in the corporate governance of venture companies is mainly carried out through a series of Qingyin contracts.

The state vigorously develops emerging products, and gives certain help to small, medium and micro entrepreneurial enterprises, among which venture capital and industrial investment are important investment objects, and what is the difference between the two?

The difference between venture capital and industrial investment:

(1) The object and scope are different

Venture capital is a type of financial capital that takes the entire start-up enterprise in the process of establishment as the business object and obtains the expected annualized return on capital appreciation realized by transferring the equity of the invested start-up enterprise. The so-called enterprise creation process here includes not only the seed stage, the initial stage, the expansion period and the transition period before maturity, but also the reconstruction period of the old enterprise; Industrial investment is a type of investment method that directly takes products or services as the business object and aims to obtain industrial profits, which belongs to the category of industrial capital, and its investment target usually refers to the industrialization enterprise projects that are mature and have a certain scale.

(2) The level of service and participation is different

Venture capital participates in the creation process of the invested enterprise by providing venture management services, including all the operation and management activities of the invested enterprise, and bears all the risks of the enterprise, assuming all its business projects and management risks; Industrial investment, on the other hand, is only aimed at the supervision of one or several projects of the invested enterprise, and does not involve other projects of the enterprise and the affairs and management of the enterprise itself.

(3) Different risks and profit models

The fundamental reason why venture capital and industrial investment also show the difference in profit models due to different business objects is that venture capital investors do not directly operate products or services, but operate through the invested enterprises, so there must be problems such as entrustment - cost and risk between venture capital and invested enterprises.

It is precisely because the risk of venture capital is not only the operational risk of the invested enterprise, but more reflected in the entrustment-** risk, which determines that venture capital investors can only rely on the expected annualized expected return of capital appreciation to achieve the expected annualized expected return; Industrial investors usually directly operate products or services by themselves, and there is no entrustment in the investment and operation of this link, such as cost and risk, so they usually only need to face operational risks, and achieve expected annualized expected returns through industrial profits.

(4) The timing of the entry and exit of funds

Different venture capital invests in unlisted start-ups with high growth potential in the form of equity, enters the creation process of the invested enterprise by providing entrepreneurial management services, and realizes capital appreciation through equity transfer after the invested enterprise is relatively mature; The industrial investment is to enter the industrialization enterprise project in the mature stage and with a certain scale in the form of equity, and can hold shares within the statutory period, and it is not related to the development degree of the project enterprise.

Summary. Dear, glad to answer for you. The types of venture capital** are:

Individual decentralized venture capital, non-professional governance of institutional venture capital, professional and institutional governance of venture capital. Venture capital** is a form of venture capital, and investment banks are professional institutions that operate and govern venture capital. <>

What are the types of <> venture capital**?

We will be happy to answer for you. The types of venture capital** are: individual venture capital, non-professional governance of institutional venture capital, professional and institutional governance of venture capital.

Venture capital** is a form of venture capital, and investment banks are professional institutions that operate and manage venture capital transfers. <>

<> pro, venture capital** can more efficiently respond to the financing needs of micro, small and medium-sized enterprises. Venture capital** not only supports the development of individual technology companies, but also helps to promote the slow growth of certain technology industries. Venture capital**'s contribution to solving the problem of financial difficulties for small and medium-sized enterprises.

From the perspective of the life cycle of entrepreneurial enterprises, the entrepreneurial process of enterprises can be divided into four stages: seed stage, initial stage, expansion stage and relative maturity stage. Venture capital, also known as venture capital or equity capital, is to invest in enterprises with core competitiveness and very good development prospects in the form of equity investment, so as to achieve capital appreciation and promote high technology. <>

1. Liquidity risk.

There is a liquidity risk in any kind of investment instrument, that is, the difficulty of realizing the liquidity faced by investors when they need to sell and the risk of not being able to turn into a cash on the appropriate level. For example, under normal circumstances, open-ended investors do not have the liquidity risk of not being able to find a buyer at the appropriate price, but when facing the extreme situation of a large redemption or suspension of redemption, the investor may bear the risk of not being able to redeem or redeeming at a low price due to net worth. This is the open-ended** liquidity risk.

2. Investment risk.

The degree of risk of investment itself varies depending on the investment direction determined and the objectives pursued. If there is a **investment and sales capital**, it mainly invests in small companies with strong growth potential.

**, the degree of risk is higher; If there is a **investment** mainly invested in the stable performance ** or the bond market, its income is relatively stable, and the risk is relatively small. When making investment, investors should carefully read the prospectus, have a clear understanding of the nature of investment, the direction of capital investment and the goals pursued, and have a basic judgment on the risk of the investment portfolio.

3. Institutional management risk.

Since the establishment and operation of the company involves different institutions, such as custodians, accounting firms, managers, etc., there are risks in the management and operation of the institutions.

4. Various risks in the market.

Changes in domestic and international political and economic policies will cause market fluctuations, and these risks directly affect the market, which also affects the income and efficiency.

5. Different types of different risks.

For open-ended**, there is an unknown risk of subscription and redemption**. When investors subscribe and redeem ** units on the same day, the net asset value of the units referred to is the data of the previous ** trading day. Investors cannot predict the changes in the net asset value of ** units from the previous trading day to the trading day, so investors cannot know what ** will be traded when subscribing and redeeming.

This kind of risk is the unknown risk of open-ended subscription and redemption. There is a risk of expiration in the closed-end type, and it should be noted that the closed-end type will be liquidated when it expires. The liquidation price is the net asset value at maturity, and the P/E ratio has no meaning to it.