Venture capital companies should carefully choose their own entry opportunities when participating in investment. An investment company will inevitably participate in different rounds of investment, and may also play the role of leading investment and following investment.
Is there a trend in the investment process, under which venture capital can avoid invalid investment and improve performance?
In venture capital, the timing of investment by stages is the most difficult problem for venture capitalists to make decisions.
There are different income patterns at different stages. Through the research on the income model of each stage, it is found that the optimal shareholding of venture capitalists is decreasing with the smooth progress of investment, and the mechanism of solving this problem through staged investment is discussed.
Extended data:
Overview of investment and financing rounds:
For start-ups, a lot of funds are needed in the development process, and it is difficult to effectively support the long-term development of the company only by the entrepreneurs or shareholders' own funds.
Obtaining reasonable financing helps to lay a foundation for the development of enterprises and increase their competitiveness.
Generally speaking, the external financing methods of enterprises are mainly debt financing and equity financing. The former mainly refers to the integration of funds by borrowing from banks or non-bank financial institutions or issuing bonds.
The latter refers to: when the company is a limited liability company, the total share capital of the company is increased by introducing new shareholders to invest in the company without reducing the capital contribution of the original shareholders.
When the company is a joint stock limited company, the company will increase its total share capital by introducing new shareholders to purchase additional shares of the company.
The purpose of introducing new shareholders is to increase the company's share capital and objectively dilute the shareholding ratio of the original shareholders.
Generally speaking, the main financing parties of corporate equity financing are Angel, VC(VentureCapital) and PE(PrivateEquity).
Financing rounds can be divided into seed round, angel round, A round, B round, C round, D round and E round. However, according to the actual situation, some projects will also carry out PreA, A+ and C+ rounds of financing.
Early financing mainly includes: seed round, angel round, Pre-A round and A round financing.
Medium-term financing mainly includes: round B, round C, round D and round EF.
Post-financing Pre-IPO rounds: At this time, the project has the ability to continue to make profits after multiple rounds of financing. Generally speaking, there will be a Pre-IPO before the IPO to ensure that the IPO can proceed normally.
Generally speaking, the financing at this stage mainly comes from brokers, investment banks and large investment institutions, and their involvement is conducive to ensuring the smooth progress of IPO.
IPO is the so-called listing (initial public offering). This stage is the last milestone on the road of venture capital investment and financing, and it is also one of the important exit ways of many private equity investments.