What does a venture capital enterprise mean? What does a venture capital enterprise mean?

1. The concept of venture capital enterprises comes from the Interim Measures for the Administration of Venture Capital Enterprises. It refers to an enterprise organization incorporated in China, which invests in entrepreneurial enterprises, with a view to obtaining capital appreciation income through equity transfer after the invested entrepreneurial enterprises are mature or relatively mature. Venture capital enterprise is only a sub-concept of private equity investment fund, and it is also a unique concept in China.

2. The target enterprises of venture capital enterprises are limited to investing in growth-oriented unlisted enterprises in the process of creation or start-up. However, private equity investment funds invest in all unlisted enterprises, and the target enterprises can be in the initial stage, growth stage or Pre-IPO stage.

3. There are some differences between venture capital enterprises and private equity investment funds. In organizational form, venture capital enterprises can adopt corporate system and other enterprise forms permitted by law, such as partnership system or cooperative Chinese-foreign cooperative enterprises, while private equity investment funds can be not only corporate system, limited partnership system, but also contract system represented by trust.