Venture Capital (English: VC for short), also translated as venture capital, is mainly a financing method to provide financial support to 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, which is composed 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).

Private Equity ("PE" for short) is also private equity investment. From the perspective of investment mode, it refers to the equity investment in private enterprises, that is, unlisted enterprises. In the process of transaction implementation, the future exit mechanism is taken into account, that is, through listing, mergers and acquisitions or management buyback, the shares are sold for profit.

Extended information:

In terms of fund raising, it is mainly raised for a few institutional investors or individuals in a non-public way, and its sales and redemption are conducted by fund managers through private consultations with investors. In addition, the investment method is also carried out in the form of private placement, rarely involving the operation of the open market, and generally there is no need to disclose the details of the transaction.

most of the funds of venture capital companies are used to invest in new ventures or unlisted enterprises (although the use of funds has been greatly relaxed in current laws and regulations), and the purpose is not to operate the invested company, but only to provide funds and professional knowledge and experience to help the invested company obtain greater profits, so it is a high-risk and high-reward enterprise that pursues long-term profits.

Baidu Encyclopedia-Venture Capital

Baidu Encyclopedia-Private Equity Investment