Venture capital is a professional investor, but it must not be a professional project operator. They will give operators enough trust and space to watch without saying anything, let alone doing it. Because in the division of labor of this game, he is also an investor. When the project is selected, his fate is handed over to the team of this project. He can give support, but only if the other party asks and allows.
Venture capitalists are usually very sensitive to the market. They know what industries are in the darkness before dawn and where the market opportunities are. Usually, they make decisive judgments, and usually these judgments are very correct. Similarly, when the market changes, they will withdraw funds quickly.
In the commercial profit model, venture capitalists often invest in multiple projects at the same time. Of course, like actuaries in insurance companies, they will accurately calculate the chances of success. Therefore, even if there are a lot of bad debts, because they always put their eggs in several different baskets, the return on their total investment income is generally not bad.
Generally speaking, venture capital companies will get two kinds of returns every time they raise funds: one is to extract a part of the final profit of the investment, usually 20%, which is called "incidental income"; Then there are a series of expenses to maintain the normal operation of the company, because venture capital companies need some financial support before the investment effect appears, and the expenses are usually 2% ~ 2.5% of the total management funds collected every year. ?
Venture capital company is a special venture fund (or venture capital), which effectively invests the funds in charge in high-tech enterprises with rich profit potential, and obtains capital return through the listing or merger of the latter.
Venture capital companies are similar to investment companies, except that their customers are start-ups rather than big companies. Inexperienced young companies, in addition to capital, often need pertinent advice. In this regard, venture capital companies can provide.
Venture capital companies have a wide range of investment fields. Although venture capital has not really appeared in China for a long time, it has developed very rapidly in China in recent years due to the development of China and its special market. One of the big aspects is that venture capital companies can see this embodiment.