The investment opportunities of primitive stocks are very scarce, and most investors are related to internal investors and limited targeted financing targets of the company. Many ordinary investors will not face this opportunity even if they have money. Equity investment funds shoulder this heavy responsibility. The source of funds can be raised from unspecified public, or from institutions or individuals with risk identification and tolerance through non-public offering.
The long investment cycle means that a lot of human and financial resources have been invested. From holding shares to withdrawing from listing, just like taking care of children, you need to take care of your diet and daily life at all times. Each project has a specific industry. Investors do not understand the industry, industry cycle and market environment where the project is located, which will cause industry positioning risk. Incomplete understanding of the technical level and production capacity of the project enterprise and inaccurate positioning of the development stage of the invested enterprise will lead to the risk of investment type selection. Letter of intent, due diligence, financial and legal audit, etc. ?
The change of enterprise's operating conditions will easily lead to unfavorable situations such as performance decline, closure and bankruptcy, which will affect the recovery of investment funds through listing, equity transfer and management buyback, resulting in no return or even loss of equity investment principal. In the worst case, it may even lead to a complete loss of principal. Operational risk mainly refers to the operational risk of the invested enterprise. Risks may be caused by changes in the market environment of the industry where the project is located, mistakes in business decision-making, insufficient ability of enterprise managers or unstable management team. ?