1. PRE4 in reinvestment refers to pre-investment valuation.

"Pre-money valuation" is often referred to as "pre-money" or "pre". When experienced entrepreneurs discuss with VCs, it usually goes like this: "How about I give you pre-6 million?" "I

The product is good and there are customers. I think it should be at least pre 8 million!" Corresponding to pre is post-money valuation, referred to as "post-money" or "post".

Post is equal to pre plus financing amount.

That is: if a company raises 4 million, the pre-money is 6 million, and the post-money is 10 million. If the VC invests 4 million, it can account for 40% of the shares, and the founder team accounts for 60%.

2. Reinvestment refers to the interest income received by bond holders during the holding period, the principal and interest received upon maturity, the capital gains obtained when selling, etc. The returns that can be achieved through reinvestment may be lower than

The yield on the bond when it was originally purchased.

Reinvestment risk reflects the impact of falling interest rates on the reinvestment of interest income from fixed-income securities, which interacts with the price risk (i.e., the interest rate risk mentioned earlier) brought about by rising interest rates.

Specifically, when interest rates fall, the Fund will obtain a smaller rate of return when reinvesting the interest income earned from the fixed income securities it invests in.