Venture capital refers to the investment implemented when an enterprise is established. The purpose of this kind of investment is to ensure that enterprises can have the most basic production and operation conditions and corresponding current assets when they are founded.
Initial investment and follow-up investment can be divided into initial investment and follow-up investment according to the role of investment in the production process. Venture capital refers to all kinds of investment when starting a new enterprise, which is characterized by forming the original assets of the enterprise through construction and creating necessary conditions for the production, operation or service of the enterprise. Follow-up investment refers to various investments implemented to consolidate and improve enterprise reproduction, including renewal investment to maintain simple reproduction, additional investment to expand reproduction, and transfer investment to adjust production and operation direction.