Zhang San wants to start a business and open a pancake stall, but there is no start-up capital, but Zhang San has been working for others to make pancakes, and the stall is good. French pancakes are different from Tianjin pancakes.

So Zhang San wanted to find someone to invest in him as a start-up fund. At this time, Lao Wang next door appeared. Lao Wang knows Zhang San very well and has always been obsessed with his French pancakes. So Lao Wang told Zhang San, I invested 2000 yuan, you bought things, and 20% of the money earned later was mine. Zhang San is very happy. He got a start-up capital of 2000 yuan with only one entrepreneurial project and one craft. (angel investment is the earliest start-up capital for entrepreneurs)

Zhang San worked for a while and his business was getting better and better. He needs to expand his scale and want to open a pancake shop and put some new products on the shelves. At this time, Zhang San told Lao Wang next door what he thought. Lao Wang said I have no money either, but my friend may have. So they found Lao Song, Lao Wang's neighbor and agent. They showed Lao Song the accounts of the pancake stall, with considerable profits and stable customer growth. They also said that a new product, French pizza, will be launched in the future. Lao Song thinks it's good. After all, he believed Lao Wang and had good data, so Lao Song invested 200,000 yuan and told Zhang San that 10% of your store's profits in the future would be mine. Zhang San is very happy. (vc is generally the capital entered after a startup project has a certain business model and data, which is much larger than the amount invested by angels.)

After working for a period of time, Zhang San found that the business of the store was so good that he needed to expand and open new stores, so he found Lao Song again. Lao Song said, hey, I don't have any money either. My friend may have it. So I took Zhang San to the rich man. I went to the pancake shop and showed him the detailed account data. I think it's not bad. Let's sign an agreement first and show him carefully in a few days. A few days later, I took professional experts in property, legal affairs and business to conduct research, tasted Zhang San's products in detail, observed Zhang San's passenger flow, investigated the customer's reputation, went to the industry and commerce to check the ownership structure and comprehensively evaluated the risks. Then I said to Zhang San, yes, I will invest 2 million yuan in you, so that you can open a shop like 10. (PE fund is the capital that enterprises enter after they have a stable profit and business model, and the capital scale is much larger than vc)

Generally speaking: angel investment -VC-PE-IPO.