With the gradual opening of China's capital market and the improvement of its capital system, capital markets at all levels have been established one after another, enriching the financing channels of enterprises, expanding the scale of equity investment and boosting the improvement of economic structure. In this context, equity has become the favored investment mode of capital, and various equity investment modes attract the intervention of capital. This shows that the focus of capital has shifted from the secondary market to the primary market, and it also shows that the risk tolerance of domestic investors has been continuously improved on the basis of enhanced financial strength. Of course, opportunities and risks coexist, and the risks that equity investment should pay attention to include investment decision-making risk, enterprise management risk, capital market risk and legal risk.

The risks of investment decision-making are mainly reflected in inaccurate project positioning and omissions in decision-making procedures. Before making an investment decision, we have to go through a series of procedures, such as investment letter of intent, due diligence, financial and legal audit, etc. Imperfect investment procedures, incomplete due diligence, and program omissions may cause unpredictable risks. Enterprise management risk mainly refers to the management risk of the invested enterprise. The risk may be caused by changes in the market environment of the industry where the project is located, such as economic recession. It may be a mistake in business decisions, such as blind expansion and excessive diversification. It may also be that the ability of enterprise managers is insufficient or the management team is unstable. Capital market risk mainly refers to the risks brought by policies (such as monetary policy, fiscal policy, industrial policy, regional development policy, etc.). As soon as the policy changes and the market price fluctuates, the risk will come immediately. This kind of risk is a systematic risk that any investment project can't avoid, because the changes of macro policies such as interest rate adjustment have an impact on every enterprise in the system, but different industries are affected to different degrees. Legal risks are mainly reflected in legal issues such as contracts and intellectual property rights. Management contracts or other similar investment agreements signed between equity investment funds and investors, such as security of deposit and guaranteed rate of return, are often not protected by law, which is one of the investment risks. Improper conclusion of equity fund investment agreement and protection of trade secrets may also bring contract legal risks. In addition, legal risks are also manifested in the daily operation of the target enterprise, such as contract risk, irregular operation risk, accidental injury risk of employees, imperfect rules and regulations, lax management of company seals and so on. Pay attention to the governance structure of the invested company. Whether the money invested by equity investors has a return depends on whether the governance structure of the invested company is perfect. It is not a day's work to establish an effective and perfect governance structure. When choosing an investment partner for equity investment, the most important thing is to examine whether the company's equity structure is perfect, and whether the management and entrepreneurial team have the will and determination to improve the company's governance level and improve the company's operational efficiency.