Disadvantages: its duration is limited, and domestic venture capital funds are relatively short, usually 5 to 7 years. It must withdraw all projects for liquidation, which will have a great negative impact on enterprises; It is more likely to be the enemy of entrepreneurs. Venture capital can bring you money when entrepreneurs need it most, but you may also be swallowed up by venture capital.
1. Venture Capital (VC), which can also be translated as venture capital, can be in the form of private equity, and is provided by companies or funds to early start-ups that are considered to have high growth potential or have shown high growth (the stock has not been publicly issued or listed).
Two, venture capital can occur in the initial "seed capital" stage. Venture capitalists invest in order to recover funds through the final "exit" event (sale of shares), such as the company selling shares to the public in the initial public offering (IPO) or conducting mergers and acquisitions (also known as "transaction sales" as a company). It is an investment method, pointing to investing in start-ups and buying shares in companies. Venture capital company is a professional investment company, which is composed of a group of people with knowledge and experience related to science, technology and finance. By directly investing in the equity of the invested company, it provides funds to those who need funds (the invested company). Most of the funds of venture capital companies are used to invest in unlisted enterprises, not for the main purpose of operating the invested company, but to provide funds and professional knowledge and experience to help the invested company grow rapidly, obtain greater profits and realize the public offering and listing of shares, so it is a high-risk and high-return undertaking that pursues long-term profits.
3. Venture capital companies or funds invest in these early companies in exchange for the equity of their investment companies. Venture capitalists take risks and invest in high-risk start-ups in the hope that some of them will succeed.