Private equity investment (angel, fund) is a very broad concept, which refers to any kind of investment in which equity assets cannot be traded freely in the stock market. Venture capital funds mainly invest in enterprises that are still in the growth stage, usually emerging sunrise industries. Because these industries have good future development prospects, these enterprises may get great development in the future or become industry leaders.

2. The investment time is different.

Private equity investment funds usually invest in mature enterprises and Pro-IPO enterprises, most of which are already the leaders of sub-sectors and may be only one step away from listing. Private equity investment funds enter to help these enterprises meet the listing standards, and then exit by selling their own shares in the stock market, so the investment price of private equity investment funds is usually relatively high.

3. The exit time is different.

Because venture capital funds invest earlier, the price is relatively low, but at the same time the risk is greater and the cycle is longer. Venture capital funds can be withdrawn through mergers and acquisitions of large companies and sold to other private equity funds or IPOs in the second financing. Active angel investors will take the initiative to invest in private equity enterprises. Passive institutional investors may invest in private equity investment funds, which are then managed by private equity investment companies and invest in target companies.

4. The investment scale is different.

Venture capital funds are relatively difficult, because it is difficult to find companies with real potential that have not been discovered, which tests investors' judgment. Private equity funds generally refer to funds engaged in private equity (non-listed company equity) investment. At present, there are many private equity funds in China, including Sunshine Private Equity Fund and so on. The number of private equity funds is still increasing rapidly.

Extended data:

VentureCapitalFund refers to a fund run by a group of people with professional knowledge and experience in science, technology or finance, which specializes in investing in companies with development potential and rapid growth. Venture capital is a long-term investment with poor liquidity, and it usually takes 5- 10 years to get a significant return on investment.

Private equity fund is a fund engaged in private equity (non-listed company equity) investment. It mainly includes investing in the equity of non-listed companies or the non-publicly traded equity of listed companies. The pursuit is not equity income, but the profit from selling equity through equity transfer paths such as listing, management buyout and merger.

References:

Private Equity Investment Fund-Baidu Encyclopedia

Venture Capital Fund-Baidu Encyclopedia