Investment can be divided into
In addition, venture capital is a private equity investment in the form of equity capital. Its investment operation mode is that investors invest in venture companies or high-growth oriented enterprises, occupy the shares of the invested company and cash out at an appropriate time.
Venture capital companies only invest in unlisted enterprises. Their interest lies not in owning and operating venture enterprises, but in quitting and finally realizing investment income. The sole purpose of an investment company is to promote its investment appreciation through the rapid development of the invested enterprise, and cash out at an appropriate time. The exit method can be public listing (IPO), sale of equity to a third party (trade sale), entrepreneur repurchase or liquidation.
Venture capital is divided into venture capital and angel investment, which are popular abroad. One is stranger investment and the other is related party investment.
Angel capital is a one-time upfront investment provided by free investors or informal venture capital institutions for original project ideas or small start-ups. Although angel investment is a kind of venture capital, there are great differences between them. Angel investment is a kind of unorganized venture capital, and its source of funds is mostly private capital, not professional venture capitalists. Angel investment threshold is low. Sometimes even an entrepreneurial idea can get funds as long as it has development potential, and venture capital is generally not interested in these unborn or hungry "babies". For entrepreneurs who have just started, they can't eat the "rice" of bank loans and the "vitamins" of venture capital. In this case, they can only rely on the "baby milk powder" invested by angels to absorb nutrition and thrive.