Venture capital funds absorb funds from institutions and individuals in a certain way, and invest in emerging, fast-growing enterprises with great competitive potential and without listing qualifications in the form of equity investment to help the invested enterprises mature and obtain listing qualifications as soon as possible. Once the company's shares are listed, venture capital funds can recover their funds through equity transfer in the securities market and continue to invest in other venture enterprises.
1. Investment targets: mainly small, emerging or unregistered high-tech enterprises that do not have the listing conditions.
2. Investment cycle: 2-5 years for general venture capital.
3. Return on investment: quite high, averaging 20%-40%.
4. Investment purpose: inject capital or technology to obtain part of equity (not for holding shares), promote the development of the invested company, and make capital increase and stock rise profitable.
5. Profit mode: listing or transfer of equity (exit mechanism).
6. Investment stage: the initial stage and expansion stage of enterprise development.
In the development process of venture enterprises from scratch and from small to large, venture capital funds not only provide funds for them, but also have a great impact on their corporate governance structure. Venture capital funds mainly participate in the corporate governance of venture enterprises through a series of contracts.