What are the rules for the split and merger of graded funds? What's the difference between a special fund account and a private placement?
VC venture capital:
Venture capital is an investment process in which capital is invested in the research and development of high-tech and its products with failure risk, aiming at promoting the commercialization and industrialization of high-tech achievements as soon as possible, so as to obtain the expected annualized return of high capital.
Venture capital has the following characteristics:
1, the investment targets are mostly small and medium-sized enterprises in the initial stage, mostly high-tech enterprises;
2. The investment period is at least 3-5 years, and the investment method is generally equity investment, which usually accounts for about 30% of the equity of the invested enterprise, and it does not need a controlling stake or any guarantee or mortgage;
3. Investment decision-making is based on high specialization and procedure;
4. Venture capitalists generally actively participate in the operation and management of invested enterprises and provide value-added services; Venture capitalists generally meet the financing needs of the invested enterprises in the future;
5. Because the purpose of investment is to pursue excess returns, when the invested enterprise adds value, venture capitalists will withdraw their capital through listing, mergers and acquisitions or other equity transfer to realize value-added.
Angel investment:
Angel investment refers to a one-off upfront investment made by wealthy individuals to assist original projects or small start-ups with special skills or unique concepts. This is a kind of venture capital.
Usually angel investors don't expect high returns, but the returns of 10 to 20 times are enough to attract them. This is because when they decide to invest, they often invest in one industry 10 projects at the same time, and only one or two projects may succeed in the end. Only in this way can angel investors share the risk. Its characteristics are as follows:
1. angel investment amount is generally small, and it is a one-time investment, and its audit of venture enterprises is not strict. It is more based on investors' subjective judgment or personal likes and dislikes. Usually angel investment is invested by one person, and it will be closed when it is ready. This is a personal or small business activity.
2. Many angel investors are entrepreneurs themselves and understand the difficulties faced by entrepreneurs. Angel investors are the best financing targets for startups.
They are not necessarily millionaires or high-income people. Angel investors may be your neighbors, family, friends, company partners, suppliers or anyone who is willing to invest in the company.
4. Angel investors can not only bring money, but also bring contacts. If it is a celebrity, it can also enhance the credibility of the company.