Huaxin Investment and CDB are investors, and Huaxin Investment invested in CDB.

1. What are the basic elements of venture capital?

1. Venture capital

Venture capital refers to a kind of capital provided by professional investors for fast-growing emerging companies with great appreciation potential. Venture capital enters these enterprises by purchasing equity, providing loans or providing loans after purchasing equity.

venture capital is divided into two types: direct investment funds and guarantee funds. The former enters the invested enterprise by purchasing equity, mostly private capital; The latter helps the invested enterprises by providing financing guarantee, and most of them are funds.

2. Venture capitalists

Venture capitalists can be mainly divided into venture capitalists, venture capital companies, industrial affiliated investment companies and angel investors, among which venture capitalists and venture capital companies are the most common.

Venture capitalists are entrepreneurs who invest in other entrepreneurs. Like other venture capitalists, they make profits by investing. But the difference is that all the capital invested by venture capitalists belongs to themselves, not the capital entrusted for management. Then most venture capital companies invest through venture capital funds, which are generally organized in the form of limited partnership.

3. Investment duration

The time interval between the investment of venture capital and the withdrawal of investment is called the investment duration of venture capital. As a kind of equity investment, the term of venture capital is generally longer. Among them, venture capital in the start-up period usually enters maturity within 7-1 years, while the follow-up investment is mostly only a few years.

4. Purpose of investment

Although venture capital is a kind of equity investment, the purpose of investment is not to obtain the ownership of the enterprise, not to hold shares, nor to operate the enterprise. It is to enlarge the investment enterprise by investing and providing proliferation services, and then withdraw through public listing, mergers and acquisitions or other means to realize the return on investment in the flow of property rights.

5. investment methods

from the nature of investment, there are three ways of venture capital: first, direct investment. The second is to provide loans or loan guarantees. The third is to provide some loans or guarantee funds at the same time. But no matter what kind of investment, venture capitalists generally provide value-added services.