What's the difference between an investment company and a venture capital company?

General investment tends to invest in enterprises that have established a certain market position and relatively stable cash income. Its forms include loans of various maturities, preferred shares and common shares. Interest or dividend income from these investments constitutes a large part of investment income. Therefore, its investment plan often requires the safety of investment, such as giving priority to dividends when investing in equity and giving priority to compensation when lending. Investors generally do not participate in company management, and often react only after the situation changes. As long as the company's business activities and investment expectations are roughly the same, investors will not exert too much pressure on the company's managers. Venture capital is an investment activity that accepts risks (although it is not necessarily seeking risks) rather than avoiding risks (generally speaking, investment is trying to avoid risks). As the object of venture capital, start-ups often have a serious shortage of cash flow, unstable and unpredictable future income, and investors' understanding of their surrounding environment, raw materials, markets and supporting facilities is not deep and specific enough. Therefore, special requirements are put forward for their investment mode, means and measures of risk control, degree of participation in management and self-construction, which is also the reason why venture capital can be produced, developed and unique. The investment cycle of venture capital is long, and there are generally more enterprises (generally more than ten); A considerable part of the invested enterprises are losing money, and the profits are mainly realized by a few star enterprises. Because of its high risk and asymmetric information, it is far more serious than ordinary investment, so its organizational structure often adopts limited partnership system, with very low agency cost and very close interest combination, but many of them appear in the form of funds.