Venture capital, also known as venture capital, is an institution that provides financing to support emerging industries with development prospects. Its business policy is to pursue high returns in high risks. Its investment targets are mainly small enterprises and emerging enterprises that are not qualified for listing, and even enterprises that are still in the process of conception. In China, the so-called "industrial investment funds" belong to venture capital funds.

The differences between securities investment funds and venture capital funds are as follows:

1, different investment objects. Securities investment funds mainly invest in listed stocks and bonds, and venture capital funds invest in unlisted emerging small and medium-sized enterprises, especially emerging high-tech enterprises. In the United States, about 80% of venture capital funds are invested in start-up high-tech enterprises.

2. Risks and benefits are different. Securities investment funds adopt portfolio investment of securities, with less risk and more stable returns. Venture capital fund is famous for its high risk and high return. It usually takes 4-6 years to recover the investment, and there is generally no income during this period. Once you fail, you will be wiped out, and if you succeed, you will get rich returns.

3. Different financing methods. Securities investment funds are generally publicly offered and traded, with good liquidity; Venture funds are all raised by private placement, that is, raising funds from specific investment groups.