1. What does the exit mechanism mean? The so-called investment exit mechanism refers to the mechanism and related supporting institutional arrangements for venture capital institutions to convert their invested capital from equity to capital in order to realize capital appreciation or avoid and reduce property losses when the venture enterprises they invest in are relatively mature or unable to develop healthily. The essence of venture capital is capital operation, and withdrawal is the stage of realizing income and the premise of capital recovery. ? 2. Exit of M&A: The main exit mode of M&A in the future means that an enterprise or enterprise group influences and controls the operation and management of other enterprises by purchasing all or part of their equity or assets. M&A is mainly divided into forward M&A and reverse M&A. Forward M&A refers to the merger of the consideration of both parties in order to promote the sustained and rapid improvement of enterprise value, and the diluted equity of the investment institution continues to hold or directly withdraw; Reverse M&A directly refers to M&A for the purpose of investment withdrawal, that is, the behavior of subjectively cashing in investment income. The advantage of exiting through merger and acquisition is that it is not limited by many conditions of IPO, and it has the characteristics of low complexity and less time consumption. At the same time, we can choose flexible and diverse M&A methods, which are suitable for the gradual improvement of the performance of start-ups, and the merged enterprises can also share each other's resources and channels, which will greatly improve the operational efficiency of enterprises. M&A will become an important exit channel in the future, mainly because the issuance of new shares is still cautious, and M&A can exit faster for the capital seeking quick cash. At the same time, with the gradual maturity of the industry, mergers and acquisitions are also the most effective way to integrate industry resources. Third, the exit of the New Third Board: At present, the most popular exit method, the transfer of the New Third Board has two ways: market-making transfer and agreement transfer. Agreement transfer refers to the equity transaction reached by the buyer and the seller through negotiation under the auspices of the share transfer system; Market-making transfer is to add an intermediary "market maker" between buyers and sellers. For enterprises, it is a better financing choice for small and medium-sized enterprises in view of the financing function, possible merger expectation, advertising effect and government policy support brought by the New Third Board market. For institutions and individuals, lower entry threshold and flexible agreement transfer and market-making transfer system can realize withdrawal faster. Fourth, backdoor listing: Alternative IPOs withdraw from the so-called backdoor listing, which means that some non-listed companies acquire some listed companies with poor performance and weakened financing ability, divest the assets of the acquired companies and inject their own assets, thus achieving indirect listing. Compared with companies waiting in line for IPO, the average time of backdoor is greatly reduced. Under the condition that all qualifications are qualified, the whole approval process can be completed within half a year, and at the same time, the cost of backdoor is also reduced due to huge lawyer fees, and there is no need to disclose various indicators of the enterprise. The perfection of national regulatory policies and the soaring price of shell resources also make it more and more difficult to go public by backdoor. V. Equity transfer: Fast exit mode Equity transfer refers to a way for an investment institution to transfer its shareholders' rights and interests to others with compensation according to law and withdraw cash. Common such as private agreement transfer, public listing transfer in regional equity exchange center (that is, the fourth board). As far as equity transfer is concerned, the CSRC encourages this kind of acquisition and exempts it from the obligation of compulsory tender offer, although the acquisition of non-circulating public shares by agreement can not only achieve the purpose of mergers and acquisitions, but also obtain the price rent it brings; However, in the process of equity transfer, complex internal decision-making process and complex legal procedures have become the factors that affect the success of equity transfer. And the transfer price is much lower than the exit price of the secondary market. Intransitive verb buyback: The exit mode of buyback with stable income is mainly divided into management buyback (MBO) and shareholder buyback, which refers to the repurchase of shares by business operators or owners from direct investment institutions. Generally speaking, the withdrawal rate of corporate repurchase is low but stable, and some shareholders even repurchase loans in the form of repayment, with a total income of less than 20%. Therefore, only seven transactions were withdrawn through repurchase in the first half of the year. Repurchase withdrawal, for enterprises, can maintain the independence of the company, avoid the big impact of venture capital withdrawal on enterprise operation, and entrepreneurs can gain the ownership and control of the expanded enterprise, with low transaction complexity and low cost. Usually, this method is suitable for those enterprises with increasingly stable operations but no hope of listing. Seven. Liquidation: the last way investors want to quit. For the venture capital that has been confirmed as a project failure, it should be returned as soon as possible through liquidation to recover as much surplus capital as possible. Its operation mode is divided into fixed loss and pin loss. In the past five years, there have been no more than 50 cases of liquidation and divestment. Liquidation is a stop-loss measure before an enterprise goes bankrupt. Not all enterprises that fail to invest will go bankrupt and liquidate. Applying for bankruptcy liquidation is costly, time-consuming and complicated in legal process. Bankruptcy liquidation is a last resort, and the advantage is that part of the investment can be recovered. The disadvantage is obvious, that is to say, the investment loss and capital return rate of this project are negative. This is also the last exit we investors want to see. To sum up, the withdrawal of investment is mainly to transform capital, reduce property losses, and also to increase capital, which is the premise of capital recovery. It also includes a variety of exit methods, each with its own length, and investors should choose according to market conditions and their own reality.