Venture capital, also known as venture capital or equity investment, is to invest in enterprises with core competitiveness and very good development prospects in the form of equity investment to realize capital appreciation and promote the development and growth of high-tech and innovative enterprises.
Institutions that make such investments usually exist in the form of venture capital funds. So who will pay for the fund? Foreign countries are made up of relatively wealthy individuals or enterprises in society. After the introduction of venture capital into China, in order to promote the development of venture enterprises and venture capital industry, China invented the form of guiding funds to participate in venture capital institutions, and at the same time gave preferential treatment in taxation, industry and commerce, so as to improve the enthusiasm of venture capital institutions, guide social funds into venture capital fields, and support the development of small and medium-sized high-tech enterprises. At the same time, some conditions are attached to reflect the policy nature of funds, such as the amount of capital invested in start-ups cannot be lower than a certain proportion.
Not all enterprises can get this kind of financial support. First of all, your enterprise should be a high-tech enterprise (this concept is actually very vague, and venture capital institutions pay more attention to profitability and development prospects), and it is in line with national industrial policies; Secondly, this investment is not free. In order to sell their own shares, venture capital institutions should also intervene in the daily operation and management of enterprises. The main purpose is to ensure that the invested enterprise will not break its promise, standardize the use of funds, improve the management and financial system, and so on. The ultimate goal is to make the enterprise bigger and stronger, improve its own value, make the exit price of venture capital institutions reach the highest, and maximize profits.
I know little about venture capital and my writing is limited. I don't know if the question is clear, I hope it will be helpful to the landlord.