Financial institutions refer to financial intermediaries engaged in financial services and are part of the financial system. Financial services (banking, securities, insurance, trust, funds and other industries) correspond to this. Financial intermediaries also include banks, securities companies, insurance companies, trust and investment companies and fund management companies. At the same time, it also refers to lending institutions, which provide loans to companies with financial turnover to customers. The interest rate is relatively higher than that of banks, but it is more convenient for customers to borrow because they do not need complicated documents to prove it.
Venture capital institutions are the most direct participants and actual operators of venture capital, directly taking risks and sharing benefits. Limited partnership is the mainstream model of venture capital, and the rights and obligations of limited partners and major partners are coordinated and guaranteed through carefully designed ownership issues.
In the financing process of venture capital, the personal ability and performance of venture capitalists play a vital role. What they buy is capital, but what they sell is their own reputation, attractive investment plan and expectation of future income. As a financial intermediary, venture capital institutions first raise a sum of money from investors in the form of equity, and then invest in some growth enterprises in the form of holding part of equity. When the venture enterprise is successfully managed, the venture capital institution will arrange for its shares to withdraw from the venture enterprise.