Industrial investment fund is a big concept, which is usually called venture capital and private equity investment fund abroad. Generally speaking, unlisted enterprises with high growth potential invest in equity or quasi-equity, and participate in the operation and management of the invested enterprises, so as to realize capital appreciation through equity transfer after the invested enterprises mature. According to the different stages of the target enterprise, industrial funds can be divided into seed stage or early stage funds, growth stage funds, restructuring funds and so on. Industrial funds involve many parties, including fund shareholders, fund managers, fund custodians, accountants, lawyers and other intermediary service institutions, among which the fund manager is the institution responsible for the specific investment operation and daily management of the fund.

Industrial investment funds have the following main features:

First, the investment targets are mainly non-listed enterprises.

Second, the investment period is usually 3-7 years.

Third, actively participate in the operation and management of the invested enterprises.

Fourth, the purpose of investment is to promote the development of enterprises through investment based on the potential value of enterprises, and realize capital appreciation benefits through various exit methods at the right time.

Venture capital fund, also known as venture capital fund, is a new type of investment institution widely popular in the world today. It absorbs funds from institutions and individuals in a certain way, and invests in small and medium-sized enterprises and emerging enterprises that are not qualified for listing, especially high-tech enterprises. The venture capital fund does not need the asset mortgage guarantee of the venture enterprise, and the procedure is relatively simple. Its management policy is to pursue high returns in high risks. Venture capital funds mostly participate in investment in the form of shares, with the purpose of helping the invested enterprises to mature as soon as possible and obtain listing qualifications, so as to achieve the purpose of increasing capital. 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.

Venture capital funds have the following main features:

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).