PE is private placement, that is, private investment fund, which refers to an investment fund that is raised from qualified investors in the form of non-public offering and invested in stocks, equity, bonds, futures, options, fund shares and other investment targets (such as art, wine, etc.). ) stipulated in the investment contract, referred to as private equity fund.

VC is venture capital, also translated as venture capital. It is mainly a financing method to provide financial support for start-ups and obtain shares in the company. Venture capital is a form of private equity investment. Venture capital company is a professional investment company, composed of a group of people with knowledge and experience in science, technology and finance. It obtains the equity of the investment company through direct investment and provides funds to those who need funds (the invested company).

Extended data

Operation mode of PE and VC:

The corporate private equity fund has a complete corporate structure and its operation is more formal and standardized. Corporate private equity funds (such as "so-and-so investment company") are easy to set up in China. Semi-open private equity funds can also operate conveniently in a flexible way, and their investment strategies can be more flexible without strict approval and supervision.

Venture capital generally operates in the form of venture capital fund. The legal structure of venture capital fund is in the form of limited partnership, and venture capital companies, as general partners, manage the investment operation of the fund and get corresponding remuneration. In the United States, limited partnership venture capital funds can get tax incentives, and the government also encourages the development of venture capital in this way.

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