Policy 1. Initial public offering and delisting (IPO)

Delisting refers to the withdrawal of venture capital through the listing of venture enterprises. Initial public listing can be divided into main board listing and second board listing. By withdrawing from the initial public offering, venture enterprises can not only maintain their independence, but also obtain sustainable financing channels in the securities market.

Strategy two. M&A achieves the purpose of exit.

M&A divestment refers to the withdrawal of venture capital by other enterprises through mergers and acquisitions of venture enterprises. Because it takes some time for the stock to go public and appreciate, or because it is difficult for venture enterprises to meet the standard of initial public listing, many venture capitalists will withdraw their investment by means of equity transfer. Although M&A's income is not as good as IPO's, venture capital can quickly withdraw from the invested venture enterprise and enter the next round of investment. Therefore, M&A is also an important way to withdraw from venture capital.

Strategy three. Withdraw from repurchase

Repurchase withdrawal refers to the withdrawal of venture capital through the management of venture entrepreneurs or venture enterprises and the repurchase of shares of venture capitalists. Repurchase withdrawal is also a kind of merger and acquisition in essence, except that the acquirer is an insider of the venture enterprise. The biggest advantage of repurchase is that it completely retains venture enterprises, and venture entrepreneurs can master more initiative and decision-making power, so repurchase is more beneficial to venture enterprises.

Strategy four. Liquidation exit

Liquidation withdrawal is a way to withdraw from failed investment projects. Venture capital is a kind of venture capital behavior with high failure rate. According to statistics, American venture capital supports about 20% of venture enterprises? ~? 30% failed completely, about 60% suffered setbacks, only 5%? ~? 10% risk enterprises can succeed. For venture capitalists, once the invested venture enterprise fails, it is necessary to quit like this. Although the liquidation loss is inevitable (generally only 64% of the original investment can be recovered), after all, part of the investment can be recovered for the next investment cycle.

Therefore, although quitting liquidation is a last resort, it is also the best choice to avoid falling into a quagmire. There are three liquidation methods: dissolution liquidation, natural liquidation and bankruptcy liquidation.

The choice of investment exit strategy should also be based on actual conditions. Do not be blind. Timely stop loss is better and the ultimate goal. The rate of return on investing in stocks can tell whether you are making money or stopping losses.

Extended data:

Venture capital;

Short for venture capital, also translated as venture capital, it is mainly a financing method to provide financial support for start-ups and obtain shares in the company. Venture capital is a form of private equity investment.

Venture capital company is a professional investment company, consisting of a group of people with knowledge and experience in science, technology and finance. It obtains the equity of the investment company through direct investment and provides funds to those who need funds (the invested company). Most of the funds of venture capital companies are used to invest in start-ups or unlisted enterprises (although the current laws and regulations have greatly relaxed the use of funds). They do not aim at operating the invested company, but only provide funds and professional knowledge and experience to help the invested company obtain greater profits, so they are high-risk and high-return enterprises that pursue long-term profits.

Features:

Venture capital is called venture capital because there are many uncertainties in venture capital, which bring great risks to investment and its return. Generally speaking, venture capital is invested in high-tech start-ups. The founders of these enterprises have excellent technical expertise, but lack company management experience. Another point is whether a new technology can be transformed into an actual product and accepted by the market in a short time, which is also uncertain. There are other uncertainties that lead people to think that this kind of investment is risky, but it is undeniable that venture capital has a high rate of return.

Perhaps the most familiar but least known investment risk is market risk. In a highly liquid market, for example, in stock exchanges around the world, the price of stocks depends on the relationship between supply and demand. Suppose that if the demand for a specific stock or bond rises, the price will rise accordingly, because every buyer is willing to pay more for the stock.

Venture capitalists are both investors and operators. Venture capitalists generally have a strong technical background and professional management knowledge. This kind of knowledge background helps them to understand the business model of high-tech enterprises and help entrepreneurs improve the operation and management of enterprises.

Operation mode:

Venture capital generally operates in the form of venture capital fund. The legal structure of venture capital fund is in the form of limited partnership, and venture capital companies, as general partners, manage the investment operation of the fund and get corresponding remuneration. In the United States, limited partnership venture capital funds can get tax incentives, and the government also encourages the development of venture capital in this way.