The operation mode of venture capital fund is generally composed of one or more investment institutions, which will raise certain funds, and then the fund manager will be responsible for management and investment. The fund manager will choose the right enterprise to invest according to the investment strategy and objectives of the fund. Venture capital funds usually provide funds, resources and experience to help the invested enterprises solve the problems of capital shortage, marketing and strategic planning.
The return on investment of venture capital funds mainly comes from the appreciation and withdrawal of the invested enterprises. When the invested enterprise is successful and profitable, the venture capital fund can withdraw from the investment by selling equity or listing, thus obtaining the return on investment. The investment cycle of venture capital funds is generally long, and it usually takes several years or even longer to withdraw.
In a word, venture capital fund is a kind of fund specially used to invest in start-ups. By providing funds and support, it helps enterprises to achieve rapid development and also brings investors a return on investment.