The degree of participation and risk preference of investors in the follow-up operation are different: industrial investment is more about their own participation in the follow-up management and operation, such as investing in a shoe factory, then investors will participate in all aspects of products, pricing, channels, promotion, production, etc., and the economic benefits generated by the follow-up operation will be distributed among investors according to the investment ratio; However, venture capital can be understood as "borrowing" money from investors to run enterprises. Most venture capitalists do not participate in the follow-up operation of enterprises. This "loan" does not need to be repaid directly by investors (unless there is a gambling agreement), but the return on investment is realized by selling the invested enterprises (such as mergers and acquisitions, listing) and other exit methods.

In short, industrial investment needs to manage the invested enterprise by itself; Venture capital is to give money to others to manage this enterprise-the degree of risk is obvious, so the required return on investment is different.