3. In the economic and financial field, company operation: venture capitalists are also called "venture capital", which generally refers to investment in high-tech industries. As an investment field with great investment risks outside mature markets, its capital comes from financial capital, individual capital, enterprise capital, pension fund and medical insurance fund. As far as the practice of various countries is concerned, venture capital mostly operates in the form of investment funds.
Venture capital has different characteristics from general investment, as follows:
1) high risk. The object of venture capital is mainly small and medium-sized high-tech enterprises that have just started or have not yet started. The enterprise is small in scale and has no fixed assets or funds as collateral or guarantee. Because the investment target is often a "seed" technology or an idea, and they are in the initial design stage and have not been tested by the market, there are many uncertain factors whether they can be transformed into real productivity. Therefore, high risk is the essential feature of venture capital.
2) High profitability. Venture capital is a forward-looking investment strategy, and expecting high growth and high added value of enterprises is the internal driving force of its investment. Once the investment is successful, it will bring ten times or even hundreds of times the return on investment. High risk and high return are fully reflected in the process of venture capital.
3) Low liquidity. Venture capital is to invest in the early stage of the establishment of high-tech enterprises. When the enterprise is mature, it can realize the equity through the capital market, get a return, and then carry out a new round of investment operation. Therefore, the investment cycle is long, usually 4 ~ 8 years. In addition, when venture capital finally exits, if the export is not smooth, it will be very difficult to withdraw funds, which will lead to a decrease in the liquidity of venture capital.
In essence, venture capital is a support system for high-tech industries in the process of investing capital and making effective use of it. Its main functions are to accelerate the transformation of high-tech achievements, expand high-tech industries and catalyze the vigorous development of knowledge economy. Of course, for the whole national economy, venture capital is of great significance in promoting technological innovation of enterprises, promoting the adjustment of industrial institutions, changing the social employment structure, expanding the channels for individual investment choices, and strengthening the depth of the capital market.