The first stage is fund raising, that is, financing stage. In order to obtain the investment commitment of venture capitalists, it usually takes the general partner six months to one year at this stage.
The second stage is the implementation or execution stage of investment. After finding a target company with growth prospects and finally obtaining a satisfactory investment through careful due diligence and evaluation, the company became a company in the portfolio of venture capital companies. This stage usually lasts 3-7 years.
The next stage is that venture capital companies will help the companies in their portfolio grow rapidly, which will last until the liquidation of venture capital funds.
In the life course of venture capital fund, the last stage is the liquidation of the fund. Before the deadline of fund liquidation, the venture capital company should have liquidated or realized all its investments in the portfolio. Liquidation can take one of three forms: initial public offering (usually abbreviated as IPO); Sell the company; Bankruptcy liquidation of the invested company.