1, private placement: Private placement companies usually invest in enterprises in the rapid expansion stage from 1/4 to 1/2. Compared with venture capital, private equity firms pay more attention to short-term profitability and mature enterprises, which often have business models confirmed and verified by the market.

2. Venture capital: Venture capital usually invests in start-up enterprises, and the company is in the slow growth stage of 1/4 positive profit enterprises. Venture capital companies pay more attention to the long-term profitability of such enterprises. If a startup wants to get venture capital, it needs to show its profitability, the sustainability of its business model and the obstacles to the development of the industry through interviews and defense.

Second, the characteristics are different.

1. Private placement: The number of shareholders of the "investment company" should be small and the investment amount should be large, which not only ensures the nature of private placement, but also has a large capital scale.

2. Venture capital: Venture capitalists are both investors and operators. Venture capitalists generally have a strong technical background and professional management knowledge. This kind of knowledge background helps them to understand the business model of high-tech enterprises and help entrepreneurs improve the operation and management of enterprises.

Third, the operation mode is different.

1. Private placement: Venture capital usually operates in the form of venture capital funds. The legal structure of venture capital fund is in the form of limited partnership, and venture capital companies, as general partners, manage the investment operation of the fund and get corresponding remuneration. In the United States, limited partnership venture capital funds can get tax incentives, and the government also encourages the development of venture capital in this way.

2. Venture capital: Corporate private equity funds have a complete corporate structure, and their operations are more formal and standardized. Corporate private equity funds (such as "so-and-so investment company") are easy to set up in China. Semi-open private equity funds can also operate conveniently in a flexible way, and their investment strategies can be more flexible without strict approval and supervision.

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