1, investment time:

VC and angel investors mainly invest in the early stage, and PE investment projects have a certain scale.

2. Different intervention methods:

After VC provides investment funds, it generally does not participate in company management, which has high requirements for enterprise management team; In addition to providing funds, angel investment will also participate in enterprise management and provide more experience and methods on how to set up enterprises.

3. Investors:

VC has specialized enterprises to operate, such as Sequoia Capital in the United States, Softbank Investment Company in Japan and so on.

Angel investors, they are not necessarily millionaires or high-income people. It may be a neighbor, family member, friend, company partner, supplier or anyone who is willing to invest in the company.

PE is mainly operated by banks or trust companies.

The relationship between VC and PE:

Generalized PE includes VC. Narrow PE does not include VC, which will appear in the initial stage of VC's withdrawal from the enterprise, that is, after the enterprise in the early stage of listing. At this time, the enterprise is mature, has the basis of listing, and the investment scale is larger, more stable and the stock price is higher; And VC has small investment scale, high risk, many uncertain factors and cheaper equity.

Extended data:

1, investment strategy of angel investors:

(1) Pay attention to the team and people:

People and teams are the most important. It's simple. A project will have its life cycle, and a good idea can be modified a lot. Only the team is most important.

Competition depends on team execution and experience. For entrepreneurs, is there a clear strategy and a simple model to gather experienced teams?

This requires the help of some good VC and angel investors.

(2) Choose the future trend:

For angel investors, only investing in entrepreneurial projects that can become the mainstream development trend of the future society can maximize the investment income.

Stimulated by the rich effect of internet companies, almost all operators, investors and entrepreneurs have turned their attention to the field of technological innovation that can bring short-term economic benefits.

(3) Keep a low profile:

Generally speaking, angel investors never seek the help of the media, nor do they want to let more people know, but they will not close themselves. What they do is to exchange needed goods with each other and find good projects.

They are not short of money, but lack of projects. They like to communicate and share project resources.

Angel investment group will have a linkage effect. For entrepreneurs, angel investors are hidden, but when financiers find one, they will find many angel investors who trust each other.

In addition, angel investors also like to invest in projects together, one is to share risks, and the other is to expand resources.

1, PE standard investment procedure is:

(1) Project investigation. Contacted many companies. Choose your own target company or be recommended by a prestigious intermediary or financial consulting institution.

(2) Preliminary screening of projects. Assess investment opportunities in advance.

(3) Project evaluation. The preparation phase lasts for weeks, sometimes years. A PE/VC company evaluates about 100 projects every year, of which about 10 projects can enter the negotiation stage, and only one or two projects can finally get investment.

(4) Negotiation and quotation.

(5) trading institutions.

(6) due diligence. Companies that win in the initial evaluation stage will enter due diligence and negotiation procedures. At the same time, draft and confirm the stock purchase and shareholders' contract, amend the articles of association, and sign relevant employment, non-competition and confidentiality agreements with the management.

(7) Conclude the transaction. When seeking to complete the transaction and inject capital into the company, the relationship between the fund and the company will enter a new stage. The foundation continues to pay close attention to the company's actions to protect its own interests and contribute to the company's performance. The Fund will keep its own representative on the board of directors, and the company will regularly inform the Fund of its operation and consult on specific decisions. Funds usually do not participate in the daily operation of the company, but will pay attention to the long-term performance of the company.

(8)? Audit and management support. The main difference between private equity and venture capital is that private equity funds provide assistance in management, recruitment, institutionalization and strategic planning, and establish contacts with customers, suppliers, bankers and lawyers.

(9) exit. Profit withdrawal is the last link in the investment process. The main exit mechanisms are initial public offering (IPO) and strategic sale, which can also be sold back to management.

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