Venture Capital, English: venture capital, abbreviated as VC, abbreviated as venture capital, also translated as venture capital; It is mainly a financing method to provide financial support for start-ups and obtain shares in the company. Venture capital is a form of private equity investment. Venture capital company is a professional investment company, consisting of a group of people with knowledge and experience in science, technology and finance. It obtains the equity of the investment company through direct investment and provides funds to those who need funds (the invested company). Most of the funds of venture capital companies are used to invest in start-ups or unlisted enterprises (although the current laws and regulations have greatly relaxed the use of funds). They do not aim at operating the invested company, but only provide funds and professional knowledge and experience to help the invested company obtain greater profits, so they are high-risk and high-return enterprises that pursue long-term profits.

Chen pointed out: investors in venture capital often implement institutionalized operation in the form of funds. First, because the enterprise has developed to a certain stage, the market has been able to analyze and evaluate the risks faced by enterprise projects relatively reasonably, and individual investors can entrust professional investors to invest; Second, the venture capital of enterprises is relatively large, and the investment amount is generally in the order of tens of millions, so they are often institutional investors.

Professor Chen.

The following is a partial record of Chen's views:

In the early stage, under the cultivation of angel investment, start-ups have more mature business models and business plans, supported by certain user data, more mature products, and enterprises gradually enter the growth stage. At this time, angel investment can no longer meet the needs of enterprises to continue to expand production, then start-ups need venture capital to further explore the market and expand development.

Venture capital focuses on start-ups, which need the assistance of stable and long-term capital flow. Therefore, its VC investment cycle is long, usually 3-5 years, and the investment amount will be within 2 million-10/00000, or even tens of millions. Equity investment is a common investment method, usually VC owns 30% of the shares of the invested enterprise; In addition to seed financing, venture capitalists will generally meet the investment and financing needs of the invested enterprises in the future development stage.

Investors in venture capital often operate institutions in the form of funds. First, because the enterprise has developed to a certain stage, the market has been able to analyze and evaluate the risks faced by enterprise projects relatively reasonably, and individual investors can entrust professional investors to invest; Second, the venture capital of enterprises is relatively large, and the investment amount is generally in the order of tens of millions, so they are often institutional investors.

Venture capitalists do not invest in enterprises for the purpose of holding shares and paying dividends, and do not require control of enterprises, nor do they participate in the operation of companies, nor do they require any guarantee or mortgage. Its purpose is to make the enterprise develop rapidly and realize capital appreciation through capital and management investment, and then withdraw in a reasonable way, transform the invested capital from the form of equity into the form of capital, recover the investment in the flow of property rights, realize interest appreciation, and then find the next venture capital object.

It can be seen that a convenient investment exit mechanism is the guarantee for venture capitalists to obtain high returns. Without convenient exit channels, it is impossible to compensate for the high risks undertaken by venture capital. Venture capital mainly obtains return on investment through equity transfer or stock listing. In China, it is usually sold to private equity funds or exited through listing. In foreign countries, most enterprises rely on mergers and acquisitions to quit.

Professor Chen, a famous economist and CEO of Global Germany, introduced;

Famous economist, professor of finance, doctoral supervisor, the first batch of doctoral students in statistics in China. At present, he is the vice president of China Shanghai Investment Society, an expert member of China Business Federation, the executive director of China Grain Economic Society, an expert in the evaluation of National Natural Science Fund, an expert in China's pioneering humanized capital operation, the host of Shanghai TV's "Real Estate Nighttalk" column, and a special guest of China First Financial, Oriental TV and Phoenix TV. He has been invited to give lectures in universities in Peking University, Tsinghua University and Hong Kong for a long time. He has won nearly 20 national, provincial and ministerial excellent scientific research awards, visited countries and regions 100 times, and was employed by international forums and summits and lectures in foreign universities. Known as the most popular authoritative financial expert with international vision, he has successfully coached many companies to go public.