The investment process of VC funds is usually that investors raise a certain amount of funds, and then make investment decisions and management through the so-called GP (General Partner) under the leadership of GP. VC funds usually have a certain term, usually between 5- 10 years, that is to say, if the investment is successful, the foundation will distribute profits when it withdraws and return them to the capital investors.
The advantage of venture capital funds is that they support and invest in early start-ups. By providing leading capital and strategic support, start-ups can develop new technologies and services and gain advantages in the fierce market competition. In addition, venture capital funds usually participate in and assist enterprises in management and rapid growth. This kind of support further has a positive impact on supporting economic development. Therefore, venture capital fund has become the most important part in many economies, which has promoted the development of entrepreneurial culture and early enterprises.