Also known as industrial investment fund, it is a broad concept. It is usually called venture capital fund and private equity investment fund abroad. Generally speaking, unlisted enterprises with high growth potential invest in the form of equity or quasi-equity, participate in the operation and management of the invested enterprises, and realize capital appreciation through equity transfer after the invested enterprises mature. According to the different stages of the target enterprise, industrial funds can be divided into seed or early fund, growth fund, reorganization fund and so on. Funds involve many parties, including fund shareholders, fund managers, fund custodians, accountants, lawyers and other intermediary service institutions, among which the fund manager is the institution responsible for the specific investment operation and daily management of funds.

Main forms:

1. Corporate industrial investment funds exist in the form of joint-stock companies or are established in the form of limited partnerships. Every investor of this fund is a shareholder or investor of the fund company, and has the right to put forward suggestions and queries on the operation of the company (enterprise). The company's industrial investment fund is a legal person (partner), and the power of the management company hired is limited, and the ownership and management rights are not completely separated. Investors will affect the company's decision-making orientation to varying degrees, which restricts the management of the fund by the management company to a certain extent.

Two. Contractual industrial investment funds are not in the form of joint-stock companies. Investors are not shareholders, but only the parties in trust deed and the beneficiaries of funds, and have no right to participate in business decisions. Contractual industrial investment funds are not legal persons, and management companies must be entrusted to manage the assets of operating funds. The complete separation of ownership and management rights is conducive to the long-term stable operation of industrial investment funds. Because the management company has enough power to manage and operate the fund, the assets of contractual industrial investment funds will not be affected by the short-term interests of many small investors, which is in line with the operation mode of modern enterprise system.