Industrial investment fund is a big concept, which is usually called venture capital fund 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 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.

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.

The main process of industrial fund investment is as follows: first, choose the object to invest; Then, conduct due diligence; When the target enterprise meets the investment requirements, conduct the transaction structure; Participate in enterprise management after investing in the target enterprise; Finally, after reaching the expected goal, choose to quit the invested enterprise in an appropriate way to complete capital appreciation.

Industrial investment funds to screen enterprise projects mainly consider the following aspects:

First of all, the quality of the management team is the first priority, and the quality of a team will determine the ultimate success or failure of the enterprise;

Secondly, the market potential of the product. If the market potential of the product is huge, it will be valued by the fund even if it has not brought tangible profits;

Third, the uniqueness of the product. Only unique products have competitiveness and future development potential;

The following are the expected rate of return, the extremely high growth rate of the target market, the protective terms of the contract, and whether it is easy to quit.

After the invested enterprise develops to a certain extent, the industrial fund will eventually withdraw from the invested enterprise. There are three main ways to quit: one is to throw out the profits of the shares held by the invested enterprise through listing; Second, transfer the equity of the invested enterprise by other means; Third, buy back shares from industrial funds after the invested enterprises grow and develop.

Compared with traditional creditor's rights investment methods such as loans, an important difference of industrial investment fund investment is that fund investment is equity, and the focus of attention is not on the current profit and loss of the investment object, but on its development prospects and asset appreciation, so as to obtain a high return on capital gains through listing or sale. The specific performance is as follows:

First of all, the investment targets are different. Industrial investment funds mainly invest in emerging enterprises with great growth potential, among which small and medium-sized enterprises are the focus of their investment. Debt investment is mainly based on mature enterprises with stable cash flow.

Secondly, the focus of qualification examination of target enterprises is different. Industrial investment funds pay attention to development potential, and management, technological innovation and market prospects are key factors. Debt investment focuses on financial analysis and material guarantee, in which the enterprise's ability to repay without compensation is the key to decide whether to invest.

Third, investment management methods are different. After the industrial fund invests in the target enterprise, it should participate in the management and major decisions of the enterprise. However, creditors only have reference and consultation functions in enterprise management, and generally do not intervene in decision-making.

Fourth, the return on investment is different. Industrial investment is an investment model that takes risks and enjoys profits. If the invested enterprise is successful, it can get high returns, otherwise it may face losses, which is a typical high-risk and high-yield investment. The debt investment will recover the principal and interest according to the loan contract on the maturity date, and the risk and return on investment will be much lower than that of industrial funds.

Fifth, the market focus is different. Industrial investment funds focus on the potential market in the future, and its future development is difficult to predict. Debt investment is aimed at the existing mature market which is easy to predict.

The fund trust takes monetary funds as the subject matter, and the parties establish a fund trust relationship with it. This kind of monetary trust property is called "trust fund". Trust funds have the following characteristics:

(1) Trust funds are indirect funds. That is, the use of trust funds should go through intermediaries, and trust funds are funds managed and used by owners through trust and investment institutions;

(2) At the end of the election, the trust fund should be restored to its original monetary form. The main purpose of fund trust is to increase the value of funds. In addition, the development of fund trust business can make the trust fund play its financing function and contribute to the national economic development.

There are several reasons for the formation of fund trust business:

(1) The customer is not familiar with some special technical knowledge in the use of its own funds, and adopts the fund custody method to avoid the loss of funds;

(2) the client has no time to make profits by himself, but entrusts a trust and investment institution to handle it;

(three) the client does not want to show up, but entrusts a trust and investment institution to handle its funds on its behalf.

China's current fund trusts include:

(1) Trust deposit (divided into enterprise trust deposit, public welfare fund trust deposit, labor insurance fund trust deposit and individual special trust deposit);

(2) Trust loans (including technical transformation trust loans, horizontal joint trust loans, joint venture investment trust loans, compensation trade trust loans, durable consumer goods trust loans, special trust loans and real estate development trust loans);

(3) entrusted loans (including general entrusted loans and special entrusted loans);

(4) Entrusted investment;

(5) Trust investment.