Venture capital VC means venture capital in English. According to the definition of American Venture Capital Association, it refers to a kind of equity capital invested by professional financiers in emerging, rapidly developing enterprises with great competitive potential. Venture capital can also be understood as a dynamic cyclical process. Venture capitalists actively participate in the management and operation of venture enterprises or venture projects with their own professional knowledge and practical experience in related industries, combined with efficient enterprise management skills and financial expertise, until venture enterprises or venture projects are publicly traded or capital appreciation and liquidity are realized through mergers and acquisitions. After a round of venture capital withdrawal, the capital will be invested in the next venture enterprise or venture project selected, so that the venture capital will continue to increase in value. Venture capital is pouring into China market at an accelerated pace. In 2005, US$ 654.38+700 million of venture capital was invested in enterprises in China. Zero2IPO, a venture capital consulting company, predicts that this figure will rise to $654.38 billion+$500 million in 2006. VC means venture capital, which refers to the investment behavior of venture capital companies to invest the raised funds in industries and industries that they think can make money. For example, Rand in the United States, Zero2IPO in China, etc., most of their investment methods are to invest in a company, participate in the operation, make the company's assets increase rapidly, and then seize the opportunity to recover the investment and make profits by selling assets or stocks. VC is divided into financial VC and enterprise VC. Financial VC mainly pursues pure return on investment, while enterprise VC requires to create benefits for other businesses of its own enterprise while obtaining return on investment. This is also the biggest difference between financial VC and enterprise VC. Navigation of venture capital institutions:/vc.htmlVenture capital institutions China Venture Capital Network | Investment China | Internet Lab | Zero2IPO | Vertical and Horizontal Synergy | China Venture Capital Research Institute | Puke Venture Capital Network | Chuangtou Home Analysys International | Overseas Scholars Venture Capital Fund | China Venture Capital Network | iResearch Market Consulting | Acorn Garden Shanghai Incubator | Guangdong Venture Capital Promotion Association | Peking University Venture Capital and Entrepreneurship Forum | China China Venture Capital Network | Sina Enterprise Service Investment Channel | China Investment Information Network China Investment Project Network Angel Investment Institution Super Angel Investment Club | Shanghai Angel Investment Management Co., Ltd. | China Private Capital Network | Angel Investment | Zhejiang Angel Venture Capital Co., Ltd. Hebei Angel Investment Consultant Co., Ltd. | Snow Line International High-tech Venture Alliance | Fujian Angel Investor Club | Jiaxing Nankai Angel Investment Co., Ltd. Angel Investment | Shanghai Venture Capital Management Co., Ltd. Ltd. | Gu Feng Investment | Lava-Los Angels Venture Association | Angel Venture Capital Sequoia Fund of Science and Technology Coast | IDG Venture Capital Fund | Acer Technology Investment Asia Pacific Co., Ltd. | Lenovo Investment | Softbank China Venture Capital Co., Ltd. Weizhong Venture Capital Group (China) Co., Ltd. | Shanghai Lianchuang Investment Management Co., Ltd. | Walden International | Become a Fund | Fidelity International Venture Capital Shenzhen Innovation Investment Group | Tianzeng Didang (Shanghai) Venture Capital Management Co., Ltd. | China Venture Capital Co., Ltd. | Yuancheng Foundation Co., Ltd. | Standard Chartered Venture Capital Group | Li Xinzhong Investment Co., Ltd. | Wei Yong Investment Co., Ltd. | Zhongke Merchants Investment (Fund) Management Company | Guo Fu Group | Taishan International Investment Company | DCM-Doll China High-tech Industry Investment Management Co., Ltd. | Tianjin TEDA Technology Venture Capital Co., Ltd. China International Capital Corporation Shanghai Fudan Quantum Venture Capital Management Co., Ltd. Beijing Hi-Tech Venture Capital Co., Ltd. | Guangzhou Hi-Tech Venture Capital Co., Ltd. Henan Hi-Tech Venture Capital Co., Ltd. | Guangdong Venture Capital Group | Shenzhen Guocheng Technology Investment Co., Ltd. | Baling Investment (Hong Kong) Co., Ltd. Qualcomm Investment Department | Tianjin New Era Venture Capital Co., Ltd. | Shanghai Tiandi Renhe Venture Capital Co., Ltd. | Chen Xing Technology Investment Co. | SK (China) Investment Co., Ltd. Zhejiang Paradise Silicon Valley Venture Group Experienced the smooth growth of one enterprise after another, slowly survived the long night's suffering and collapsed in a blink of an eye. I really hope to share my experiences, experiences and ideas. What is VC's favorite business model? This topic is taken out as the opening words of my blog to communicate with you. VC, for some reason, is translated as "venture capital" in China, but this risk is not another risk. In fact, venture capitalists will deliberately avoid risks. A new company or an investment project usually has three risks: one is the market, the other is technology, and the third is people. Let's talk about the risk of "people" first. After 25 years of development in the United States, there are very successful professional managers, so the risk of people is relatively small, while the risk of "people" in China is relatively large, which is also the biggest problem faced by entrepreneurial enterprises in China. For the "market" risk, because the markets of various industries in the United States have basically developed well, entrepreneurial projects are more about opening up new markets. As for China, the original market has not been fully tapped, so new projects in China can avoid this risk by positioning the market in the existing market. Similarly, using the existing technology in the United States to develop new applications in China can avoid the risk of "technology". So from the perspective of venture capital, as shown above, the business model of mature technology+mature market is the best, followed by innovative technology+mature market, and then innovative market+mature technology. For the business model of innovative technology+innovative market, investors will be very cautious and generally will not invest easily. For the project of innovative technology+innovative market, the market does not know when it will rise, the total amount and value-added speed are uncertain, the stability and reliability of technology need to be verified, and team members have no ready-made business experience to learn from. Target users, charging mode, price strategy, marketing channels, product design, etc. all need to be explored and verified, and the risk of the project will be very large and the cycle will be very long. Looking at domestic enterprises, pioneers usually can't share the fruits of victory, such as VCD and mobile phones. Recently, there are many 3G-based projects, such as mobile TV, which is a typical innovative technology+innovative market project. Although we all know that 3G will definitely come, we all know that there will be a market for mobile TV. But when 3G will come, how many users will accept it and how much they are willing to pay, these are all unknown. On the contrary, the industries of Ctrip, 5 1Job and Focus Media are actually very traditional, and the technologies used in booking tickets, job placement and advertising are also familiar, but the market is very clear, with large capacity, fast value-added speed and clear business model, which has a good performance in both commercial and capital markets. /tozhaomin/archive/2006/02/20/734575.aspx What is VC- Classic What is venture capital Venture capital is a form of private equity investment in the form of equity capital. Its investment operation mode is that investors invest in venture companies or high-growth oriented enterprises, occupy the shares of the invested company and cash out at an appropriate time. [u] Venture capital companies only invest in unlisted enterprises. Their interest is not to own and operate entrepreneurial enterprises, but to quit and finally realize investment income. [/u] Because the capital of venture capital is called the mass stock market, the liquidity of investment capital is much lower, so the rate of return it pursues is relatively higher. In order to reduce the risk, most venture capital companies do not seek a controlling position in the enterprise, and only when the investment company seeks to control the business direction of the invested company will it deliberately seek to become the largest shareholder; Managers of investment companies generally do not participate in the daily management of the invested enterprises, and mainly rely on a set of detailed project feasibility review procedures to evaluate the possibility of successful investment before investing. Dividends are not the goal pursued by venture capitalists. The sole purpose of venture capital companies is to drive their investment to increase value through the rapid development of the invested enterprises, and cash out at an appropriate time. The exit method can be public listing (IPO), sale of equity to a third party (trade sale), entrepreneur repurchase or liquidation. The capital investment market can be divided into public bonds, private placement bond, public equity and private equity. Venture capital is a kind of private equity investment, and private equity is relative to * * * (public stock market) and private placement bond (such as bank loans). In addition to venture capital, private equity investment also includes leveraged buyouts, mergers and acquisitions, mezzanine investments and turnarounds. In fact, the difference between venture capital and private equity investment is not so obvious. Multi-venture capital funds often participate in MBO/MBI and corporate restructuring investment. The position of venture capital funds in the financial capital system is shown in the following figure: The candidates of venture capital companies are mostly start-up or fast-growing high-tech enterprises, and occasionally they will invest in traditional industries with broad market prospects, retail industries with novel business models or some special consumer goods industries. These industries generally provide high value-added technologies, products or services, and can obtain long-term and guaranteed profits. The risk referred to in this paper is the process of rapid development of enterprises through the innovation of technology, products or management. In addition to entrepreneurial enterprises, venture capital companies are also interested in the following four situations: unprofitable companies help internal managers or (and) external management teams to buy leveraged buyouts (LBO/ LBI), internal financing buyouts or third-party financing buyouts, capital reorganization, shareholder change, debt swap with equity, and partial cash withdrawal of shareholders by introducing capital, management and technology (MBO/MBI). Each venture capital company has its own characteristics and positioning. The difference lies in investment scale, regional emphasis, industry preference, investment transaction type and enterprise development stage. Professional investment companies generally have a minimum investment limit because they don't have so much time and energy to consider and manage many small projects. In order to avoid excessive concentration of risks, they also have a maximum investment limit. Venture capital companies can be regarded as retailers of funds. They raise funds from large funds (such as pension funds, insurance funds, large banks, large listed companies or government agencies (we can regard these funds as fund wholesalers)) and set up venture capital funds. Then venture capital firms invest their money in potential and fast-growing growth enterprises (usually high-tech companies) and own shares in these invested enterprises. The investment period is generally between two and seven years. Venture capital companies are interested in sources of funds, potential enterprises and cash channels. The profit mode of venture capital companies is mainly to sell pre-invested shares at a price higher than the original price. There are three main exit ways of venture capital, namely, stock listing, share transfer and liquidation. Among them, the recipients of share transfer can be other investment companies, buyers of enterprise mergers and acquisitions, or entrepreneurial entrepreneurs. Venture capital companies generally have their own investment funds and also act as agents for the investment business of other funds. For agency investment business, venture capital companies generally charge 1.5-3% agency fee, and another 20-25% capital appreciation. In addition to the value-added transfer of equity and investment management agency fees, the income sources of venture capital companies may also include interest on bonds or creditor's rights, stock investment income and consulting income. Because the history of start-ups is short, the management and monitoring system is often not perfect, and the liquidity of equity is very low, investing in start-ups is very speculative and risky, and the return on investment of venture capital funds is much higher than that of stock investment funds. The target return on investment (ROI) of European and American venture capital funds is 15-30%, and the investment companies that do well can reach 40-60%. Considering the risks of specific projects, for each project invested by the fund, the target investment rate of return is higher, and the risk of investing in China is higher, so the expected rate of return is higher. According to the 2-6-2 principle of venture capital industry, out of every ten investment projects, two may generate excess returns (ten times more than the investment amount), six have mediocre returns and two fail. Generally speaking, 80% returns come from 20% projects, so the target rate of return of each specific project must be higher than that of the whole fund. Some people say that VC has invested in ten projects, and it is expected that nine projects will fail. It is really a big misunderstanding to make big money by a successful project. VC hopes to invest in ten projects, all of which are successful. Where can only one project succeed like gambling?