1, private equity fund: Private equity investment (also known as private equity investment or private equity fund) is a very broad concept, which is used to refer to any kind of investment in equity assets that cannot be freely traded in the stock market. Passive institutional investors may invest in private equity investment funds, which are then managed by private equity investment companies and invest in target companies. Private equity investment can be divided into the following categories: leveraged buyout, venture capital, growth capital, angel investment, mezzanine financing and other forms. Private equity investment funds generally control the management of the companies they invest in and often introduce new management teams to enhance the company's value.

2. Venture capital, VC for short, is a conventional concept with specific connotation in China. Actually, it is more appropriate to translate it into venture capital. Venture capital in a broad sense refers to all investments with high risks and high potential returns; In a narrow sense, venture capital refers to the investment in the production and operation of technology-intensive products based on high technology. According to the definition of American National Venture Capital Association, venture capital is a kind of equity capital invested by professional financiers in emerging, rapidly developing enterprises with great competitive potential.

3. The difference between the two: the private equity fund industry originated from venture capital, and in the early stage of development, small and medium-sized enterprises mainly started businesses and expanded financing, so venture capital became synonymous with private equity investment for a long time. Since 1980, the popularity of large M&A funds has given private equity funds a new meaning, and the main difference between them is in the investment field. Investment mode of venture capital fund