First, venture capital fund: investors invest venture capital in newly established or fast-growing emerging enterprises, provide long-term equity investment and value-added services for financiers on the basis of taking huge risks, foster the rapid growth of enterprises, and recover their investment through listing, mergers and acquisitions or other equity transfer methods several years later to obtain high investment returns. Venture capital funds usually invest in companies that are in seed stage, initial stage or early stage and have business development or product development plans. Because this kind of company has not yet formed business, and the role of financial partner in general private equity investment is different, so the classification of venture capital and equity investment is often different. Well-known venture capital funds in the industry include IDG technology venture capital fund and Sequoia Capital. Typical cases such as Baidu, IDG invested $65.438+$200 million in Baidu, and then Baidu successfully landed on Nasdaq, and IDG got a return of nearly $65.438+$00 million.
2. Industrial investment funds: private equity investment funds in a narrow sense, which usually invest in unlisted shares of enterprises in the expansion stage, and generally do not aim at holding shares. The company it is looking for needs to be relatively mature, with a certain scale, high operating profit and rapid performance growth, occupying a considerable market share and establishing a considerable entry barrier in the industry. Typical investment representatives are Goldman Sachs, Morgan and Huaping. Typical cases such as Mengniu and Focus Media. According to statistics, in the case of venture capital in Chinese mainland market in the first quarter of 2007, the total investment of start-up and development enterprises was 65,438+056% and 65,438+04.92% lower than that of expansion enterprises, respectively, and the asset scale and investment scale of industrial investment funds expanded rapidly. While obtaining capital, enterprises can also make use of investors' rich industry experience and extensive contacts to provide industry support for the development of enterprises.
Third, M&A investment fund is an enterprise that invests in the expansion period and participates in management buyout. Acquisition funds occupy a dominant position in the international private equity investment fund industry, accounting for more than half of the funds flowing into private equity investment funds every year, which is equivalent to more than twice the funds obtained by venture capital funds. But he played a supporting role in China for a long time. The main reason is that China enterprises, whether state-owned or private, are generally unwilling to give up control. The transfer of enterprise control rights also depends on breaking through the system, the bottleneck of public opinion and the national plot of Chinese people, which takes time. Typical cases such as Carlyle's acquisition of Xugong.
For example, according to the different stages of private equity investment in enterprises, private equity investment can be divided into venture capital, development capital, M&A funds and PIPE (post-listing private equity investment), or into seed or early-stage funds, growth funds and restructuring funds.
According to the different objects of private equity investment, private equity investment can be divided into venture capital fund, infrastructure investment fund, pillar industry investment fund and enterprise restructuring investment fund.
Of course, there are also some unique investment funds in the market, such as angel investment, which initially refers to the investment behavior with a certain nature of public welfare donation, and was later applied to the field of venture capital. Its investors are called angel investors, who mainly invest in small-scale projects that ordinary private equity funds are unwilling to invest in, aiming at small-scale seed-stage or early-stage entrepreneurial projects. An investment is often only a few hundred thousand dollars, and they are more inclined to participate in the growth of enterprises. Because I do it myself, the investment speed is relatively fast, and the investment cost is much lower than that of venture capital.
At present, the scale of general private equity funds is about $65.438+0-3 billion, and the investment direction is relatively concentrated in the fields that investors are familiar with, such as popular TMT, medical devices and other industries. Investment projects are generally controlled within 654.38+05, and the initial investment amount is generally above 6.5438+million dollars. Sometimes the project is very attractive, and there will be a small investment of 5 million dollars. Of course, there are also some large-scale private equity funds with billions of dollars, and some of them pay more attention to traditional industries and service industries.
However, determining the investment is not an easy task. According to the proportion of internal statistics of private equity funds, if 100 projects enter the negotiation stage, only 1-3 projects will be successfully invested.