The operation mode of Pipe fund includes two modes: one is to directly inject capital into start-ups, and the other is to provide funds to incubators and accelerators first, so that they can invest or directly buy the equity of start-ups. Under the direct investment mode, investors will conduct a comprehensive inspection and risk assessment of start-ups as much as possible to ensure that the project is promising enough and the business model is feasible. In another model, they will evaluate the management level, competitiveness and market potential of start-ups through accelerators and incubators.
Getting the Pipe fund is an important way for the founder. Since start-ups usually face financial difficulties, it makes sense for them to seek help from the Pipe Fund. Through this kind of financial support, enterprises can focus on key tasks such as research and development, making business plans, and discourse brands. In addition, because pipeline investors usually provide important experience and resources to the invested enterprises, it is a good opportunity for start-ups to exercise their experience and expand their contacts. Finally, through this kind of capital means, investors can get rich returns with high risks and high returns.