An agency refers to an institution or individual who engages in capital investment or financing activities instead of others. Usually, the organization needs to provide relevant funds or projects. Capital contribution can be short-term, medium-term or long-term. Ordinary investors and employers will sign formal agreements to standardize the capital contribution process and benefit distribution.

Agency funds are generally used for some high-risk investment projects, such as start-ups and real estate projects. When choosing investment opportunities, agents need to conduct detailed due diligence to understand the risks and potential benefits of investment projects, so as to determine whether they have enough funds and appetite to bear the corresponding risks, and at the same time, they need to consider the distribution of benefits and risk sharing in the process of agency.

Agency financing is common in practical application. Some private equity funds, investment companies, banks and other financial institutions can act as agents for capital investment and financing activities. Substitution can improve investment efficiency and reduce investment risk. For individuals or enterprises lacking investment experience or funds, they can also help them obtain more investment opportunities and financial support.