Venturecapital, abbreviated as VC, is a conventional concept with specific connotation in China, but it is more appropriate to translate it into venture capital. Venture capital in a broad sense refers to all investments with high risks and high potential returns; In a narrow sense, venture capital refers to the investment in the production and operation of technology-intensive products based on high technology. According to the definition of American National Venture Capital Association, venture capital is a kind of equity capital invested by professional financiers in emerging, rapidly developing enterprises with great competitive potential. From the perspective of investment behavior, venture capital is an investment process in which capital is invested in the research and development of high-tech and its products with failure risk, aiming at promoting the commercialization and industrialization of high-tech achievements as soon as possible, so as to obtain high capital gains. From the perspective of operation mode, it refers to the process that investment intermediaries invest risks in high-tech enterprises with special potential under the management of professional talents, and it is also an investment mode that coordinates the relationship between venture capitalists, technical experts and investors, enjoys benefits and bears risks. Features 1, the investment targets are mostly small and medium-sized enterprises in the initial stage, mostly high-tech enterprises; 2. The investment period is at least 3-5 years, and the investment method is generally equity investment, which usually accounts for about 30% of the equity of the invested enterprise, and it does not need a controlling stake or any guarantee or mortgage; 3. Investment decision-making is based on high specialization and procedure; 4. Venture capitalists generally actively participate in the operation and management of invested enterprises and provide value-added services; In addition to seed financing, venture capitalists generally meet the financing needs of invested enterprises in the future development stage; 5. Because the purpose of investment is to pursue excess returns, when the invested enterprise adds value, venture capitalists will withdraw their capital through listing, mergers and acquisitions or other equity transfer to realize value-added.

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Venture capital company: It is a special venture fund (or venture capital), which effectively invests the funds in charge in high-tech enterprises with rich profit potential, and obtains the capital return through the listing or merger of the latter. Venture capital companies are similar to investment companies, except that their customers are start-ups rather than big companies. Inexperienced young companies, in addition to capital, often need pertinent advice. In this regard, venture capital companies can provide. Venture capitalists invest their money in new enterprises to help the management team develop the company to the level of "listing", that is, selling shares to the investing public. Once this goal is achieved, a typical venture capital company will sell its interests in the company and turn to the next new enterprise. (Zvibody, Finance) Venture capital companies have a wide range of investment fields. Although venture capital has not really appeared in China for a long time, it has developed very rapidly in China in recent years due to the development of China and its special market. One of the big aspects is that venture capital companies can see this embodiment.