1, investment time is different.
Angel investment mainly invests in early-stage startups, venture capital mainly invests in early-stage enterprises, and private equity investment mainly invests in late-stage enterprises.
2. Different focus
Angel investment focuses on the founder of the enterprise, because the founder of the enterprise largely determines the quality of the project. Venture capital focuses on the comprehensive consideration of the project founding team and business data. Private equity investment is oriented to mature enterprises and mature markets, which requires higher industry resources for investors.
3. Different project valuations
Venture capital and private equity investment have low pre-valuation, but with the increase of company valuation, the return multiple of a single project is lower, and the probability of investment success is higher than that of angel investment.
Extended data:
risk management
1, contract binding mechanism
It is a legally effective risk avoidance measure for all commercial activities to stipulate the responsibilities and obligations of all parties in advance. In order to prevent enterprises from harming investors and protect investors' interests, investors will formulate various clauses in the contract in detail, such as affirmative and negative clauses, conditions for adjusting the share ratio, remedial measures for breach of contract, priority clauses for additional investment, etc.
2. Sector investment
Segmented investment means that private equity investment funds control the investment progress by segments in order to effectively control risks and avoid the waste of enterprise funds, only provide the funds necessary to ensure the development of the enterprise to the next stage, and reserve the right to give up additional investment and the right to purchase the shares issued when the enterprise raises additional funds first.
3. Share adjustment clause
By adjusting the conversion ratio of preferred stock and common stock, the equity ratio between investors and enterprises can be changed accordingly, thus restraining the invested enterprises from making objective profit forecasts and setting realistic performance targets, and at the same time encouraging enterprise managers to be diligent and conscientious, pursuing the maximum growth of enterprises, thus controlling investment risks.
4. Composite securities instruments
Composite securities instruments usually include convertible preferred stocks, convertible bonds and convertible bonds. It combines the advantages of debt investment and common stock equity investment, and can effectively protect the interests of investors and share the growth of enterprises.
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