Venture capital institutions are the most direct participants and actual operators of venture capital, directly taking risks and sharing benefits. Limited partnership is the mainstream model of venture capital, and the rights and obligations of limited partners and major partners are coordinated and guaranteed through carefully designed ownership issues. In the financing process of venture capital, the personal ability and performance of venture capitalists play a vital role. What they buy is capital, but what they sell is their own reputation, attractive investment plan and expectation of future income. As a financial intermediary, venture capital institutions first raise a sum of money from investors in the form of equity, and then invest in some growth enterprises in the form of holding part of equity. When the venture enterprise is successfully managed, the venture capital institution will arrange for its shares to withdraw from the venture enterprise.

What does venture capital mean?

First, the definition of venture capital

Venture capital refers to an investment method in which professional financiers invest in emerging, fast-growing unlisted companies (mainly high-tech companies) with great competitive potential, provide financiers with long-term equity capital and value-added services on the basis of taking huge risks, foster the rapid growth of enterprises, and recover their investment through listing, mergers and acquisitions or other equity transfer methods several years later and obtain high investment returns.

Investment target: emerging, rapid growth and great competitive potential.

Capital attribute: equity capital (medium and long-term investment)

Investment purpose: pursuing high return (financial investment)

Second, the basic characteristics of venture capital

1 is an equity investment.

Venture capital is not loan capital, but equity capital; Its focus is not on the current profit and loss of investors, but on their development prospects and asset appreciation, so as to achieve the purpose of divesting capital and obtaining high returns through listing or sale. Therefore, a clear property right relationship is a necessary prerequisite for venture capital intervention.

This is an unsecured and high-risk investment.

Venture capital is mainly used to support high-tech enterprises or high-tech products that have just started or have not yet started. On the one hand, without fixed assets or funds as collateral and guarantee for loans, it is impossible to obtain funds from traditional financing channels and only to open up new channels; On the other hand, there are great risks in technology, management, market and policy. Even in developed countries, the success rate of high-tech enterprises is only 20% ~ 30%, but because of the high return rate of successful projects, it can still attract a group of investors to speculate.

3. It is a medium-and long-term investment with less liquidity.

Venture capital is often invested in venture enterprises at the initial stage, and it usually takes 3-8 years to gain income by reducing capital. During this period, it is necessary to continuously increase capital for promising enterprises. Because of its low liquidity, some people call it "sluggish funds".

This is a highly specialized and programmed portfolio.

Because venture capital mainly invests in high-tech industries, the investment risk is high, so venture capital managers are required to have high professional standards, be highly specialized and procedural in project selection, carefully organize, arrange and select, and lock in investment risks as much as possible.

In order to spread risks, venture capital usually invests in a project group with more than 10, and uses the high return of successful projects to make up for the losses of failed projects and gain profits.

This is an investment in which investors actively participate.

Venture capital and high-tech constitute two wheels to promote venture capital, and both are indispensable. When venture capitalists (companies) inject capital into venture enterprises, in order to reduce investment risks, they must intervene in the management of enterprises, provide suggestions, participate in the decision-making of major issues, and even fire the company manager when necessary, take over the company personally, and try their best to help enterprises succeed.

6. It is a financial investment that pursues excess returns.

Venture capital is an investment behavior with the main purpose of pursuing excess profit return. Investors don't take gaining a strong competitive position in a certain industry as the ultimate goal, but take it as a means to achieve excess returns, so venture capital has a strong financial investment attribute.

Three, the four elements of venture capital

1 venture capital

Venture capital refers to a kind of capital provided by professional investors, which is used to invest in emerging enterprises with rapid growth and great appreciation potential. Under normal circumstances, because the financial situation of the invested enterprise can not meet the demand of investors to withdraw funds in a short period of time, it is impossible to obtain the required funds from traditional financing channels such as bank loans. At this time, venture capital enters these enterprises by buying equity, providing loans or both.

China, USA.

Annuity foreign fund

Insurance companies and industrial companies (mainly listed companies)

Industrial companies, venture capital companies (strong background)

Individuals and families

Funds and non-bank financial institutions

investment bank

Non-bank financial institutions

Foreign fund

2. Venture capitalists

Venture capitalist is the operator of venture capital and the central link in the process of venture capital. Its job functions are: identifying and discovering opportunities; Screening investment projects; Decide on investment; Promote the rapid growth and exit of venture enterprises. Funds are screened by venture capital companies, flow to venture enterprises, and then return to ............................................................................................................................................................ & gt

What is a venture capital company?

Wind * * * company, as its name implies, is engaged in venture capital. This kind of company only inspects some start-ups to find out whether their business models or products have development prospects. If they think they have great prospects, they will invest and hold shares in small enterprises in the form of capital exchange. These small enterprises will grow and develop in the future, and the capital invested will appreciate several times and dozens of times, and they will continue to hold these shares for a long time, making profits or making a fortune by changing hands. For those startups and venture capital firms, this is a win-win result. Start-ups get development funds, and venture capitalists get huge profits in the future.

The above content is original hand-made, and plagiarism is refused!

Specific cases can be Baidu.

What are the venture capital institutions in China?

Ranking Organization Ranking Organization 1 IDG Technology Venture Capital Fund 26 Gobi Partners Co., Ltd. 2 Softbank Asia Investment Fund (SAIF) 27 Red Dot Investment 3 Sequoia Capital China 28 Shanghai Lianchuang Investment Management Co., Ltd. 4 Lenovo Investment Co., Ltd. 29 Shenzhen Innovation Investment Group Co., Ltd. 5 Hui Hui Investment Consulting (Shanghai) Co., Ltd. 30 Yihe Venture Capital Group 6 Softbank China Venture Capital Fund 3/ Kloc-0/ Japan Asia Investment (HK) Co., Ltd., Ltd. 7 Walden International Investment Group 32 Weizhong Venture Capital Group (China) Co., Ltd. 8 Jifu Asia Investment 33 Infotek Venture Capital Co., Ltd. 9 intel capital (China) 34 Shenzhen Chen Da Venture Capital Co., Ltd. 10 Dinghui Venture Capital Management Co., Ltd. 35 Shandong High-tech Investment Co., Ltd. 1 1 Qi Zhi venture capital co., ltd. 36 Qualcomm investment department 12 American business China economic cooperation group 37 Zhongxin co., ltd. 13 doll capital management company 38 Shenzhen Tsinghua Lihe venture capital co., ltd. 14 Qi Ming venture capital 39 Wei Yong investment co., ltd. 1 5 Detong Capital Management Co., Ltd. 40 Heilongjiang Chenneng Harbin Institute of Technology High-tech Venture Capital Co., Ltd. 16 Shanghai Huaying Venture Capital Fund Management Co., Ltd. 4 1 Baishang Investment Consulting Co., Ltd. (BVP) 17 Today Capital 42 becomes a venture capital 18 Lan Xin Asia Investment Group 43 Lanrun Venture Capital Fund 1 9 Lianchuang Ceyuan 44 Meideng Investment Management Company 20 Jinshajiang Venture Capital Fund 45 Beijing Qingyun Venture Capital Management Co., Ltd. 2 1 NEA 46 Hunan Gaoxin Venture Capital Co., Ltd. 22 E PlanevenTures 47 Zhejiang Science and Technology Venture Capital Co., Ltd. 23 Guangsu Venture Capital 48 Tianjin Venture Capital Co., Ltd. 24 Northern Lights Venture Capital Fund 49 China Merchants Technology Group Co., Ltd. 25 Fidelity International Venture Capital Co., Ltd. 50 Wuhan Huagong Venture Capital Co., Ltd.

How do venture capital companies operate?

Although the operation process of each venture capital company is different, in general, it basically includes the following steps: 1. After getting the summary of the business plan at the first time, scan it quickly in a short time to decide whether it is worth spending time on this matter. Second, the exchange between venture capitalists, relevant venture capitalists get together regularly to study the project proposal that has passed the preliminary examination and decide whether it is necessary to conduct an interview or reject it. Interview If venture capitalists are interested in entrepreneurs' projects, they will invite entrepreneurs for an interview, which is the most important meeting in the whole process. Four. If the initial interview is successful, the venture capitalist will carefully evaluate the technology, market potential and scale of the intended enterprise and management department through strict audit procedures, including contact with potential customers, technical consultation and multiple rounds of talks with management departments. V. List of Terms If venture capitalists think that the applied project has bright prospects, they can start to judge the investment form and estimate. Usually, entrepreneurs will get a list of terms and conditions, which will last for several months. Generally speaking, the early venture capital is large, the potential profit is high, and the later investment risk is small, but the profit is small. Venture capitalists try to adapt their investment returns to the risks they take. Venture capitalists analyze the investment value in the next 3-5 years according to the specific situation, first calculate their cash flow or income forecast, then decide the risk according to the evaluation of technology, management department, skills, experience, business plan, intellectual property rights and work progress, and choose the appropriate discount rate to calculate the net present value of their venture enterprises. After discussion, enter the stage of signing the agreement. Once the final agreement is signed, entrepreneurs can get funds. In most agreements, it also includes the exit plan. 7. After the investment takes effect, the venture capitalist will own the shares of the venture enterprise and occupy a seat on the board of directors. Most venture capitalists play the role of consultants on the board of directors. As consultants, they mainly put forward suggestions on reforming the operation mechanism to obtain more profits, regularly contact the creators to follow up the operation, and regularly review the financial analysis reports submitted by accounting firms. In order to reduce the risk, venture capitalists often join hands to invest in a project, which reduces the risk. Secondly, it also brings more consulting resources for venture capital enterprises, provides multiple evaluation results for venture capital enterprises and reduces errors. How to bargain with investors One thing that many excellent start-ups find it difficult to reach an agreement with investors is the price of the enterprise. Entrepreneurs always want to sell their enterprises at a good price, while investors are often "stingy" and keep pushing down prices. From this perspective, it is essentially the same as all other businesses. If entrepreneurs want to have reasonable pricing, they must first practice hard, because the price is the embodiment of enterprise value after all, and a mess will never be worth a good price. In addition, there are some methods for reference. 1. Reasonable financial forecast The main reason why startups, especially high-tech startups, can attract funds is the high growth and high return in the future. Therefore, in order to win a suitable price, it is necessary to have a reasonable expectation for the future, that is to say, the evaluation of enterprise value is not difficult to calculate in the end, but to work hard in the early stage: a reasonable prediction of the company's future growth and a reasonable prediction of the company's expenses and costs. From the perspective of venture capitalists, on the one hand, they care about the specific figures in financial statements, on the other hand, they are also very concerned about the correctness and effectiveness of financial forecasts. The financial forecast of an enterprise is likely to be inconsistent with the views and estimates of venture capitalists, which is normal. It also requires entrepreneurs to understand investors' ideas as much as possible, seek common ground while reserving differences, and try their best to supplement and improve their own estimates, which is well founded. It should be noted, however, that the financial forecast of an enterprise can't have common sense errors and intentional optimistic estimates, which may ruin the financing. At the same time, you must never deliberately hide some key information. Entrepreneurs should believe this: venture capitalists are all "artists", and it is not easy to "circle money" from them. Second, it is necessary to negotiate an appropriate valuation method and a reasonable price. Of course, the first point is that everyone must first have a "price" here. There are many ways to evaluate start-ups. Either way, it should be everyone ... >>

Who are the largest venture capital companies, institutions and individuals in China?

IDG technology venture capital fund

IDG Technology Venture Capital Fund (IDGVC) is an international data group.

Its well-known venture capital institutions. IDGVC, formerly known as PTV, invested in the first pilot project 1989 1 1 in Beijing in June. On this basis, 1993 began to enter the China market on a large scale and set up its own venture capital management companies in Beijing, Shanghai, Guangdong, Tianjin and Shenzhen. 1996, (Pacific Science and Technology Venture Co., Ltd.) was renamed IDGVC(IDG Science and Technology Venture Capital Fund), 1999, and IDGVC was changed from a company system to a partnership system.

IDG Group was founded in 1964, with McGovern as the founder and chairman, and headquartered in Boston, USA. At present, there are subsidiaries and branches in more than 85 countries and regions around the world, with nearly 20 thousand senior research experts and editors. By using modern information processing and transmission means, such as e-mail, database, telex and online service, a fast and comprehensive global information network has been established. The company publishes more than 654.38 million market research reports and technical development forecast reports every year, and publishes 300 related magazines in 25 languages; Hold nearly 600 international and regional academic reports, market analysis meetings and product exhibitions every year; Provide information services of various opinions and orientations.

IDGVC invests in companies at various growth stages, mainly focusing on floating technology fields such as Internet, communication, wireless, digital media, semiconductors and life sciences. At present, more than 100 outstanding start-ups in China have received investment, including Ctrip, Baidu, Sohu, Tencent, Kingdee, Home Inn, Ye Hao, NetDragon and SouFun, and more than 30 companies have been listed or acquired.

Sequoia Capital China

Sequoia Capital, founded in 1972, is the largest VC in the world, and has invested in Apple Computer, Cisco, Oracle Bone Inscriptions, Yahoo, Google and Paypal. At present, the total managed capital is nearly $654.38+0 billion, and there are nearly 30 funds. Among them, Sequoia Capital China is a China Fund localization team jointly established by Zhang Fan, former director of Defengjie Global Fund, Shen Nanpeng, former president and CFO of Ctrip.com, and Sequoia Capital, which was established in September 2005.

In the past 30 years, Sequoia, as the first group of institutional investors, has invested in many innovative and trend-setting companies such as Apple, Google, Cisco, Oracle Bone Inscriptions, Yahoo and LinkedIn. In China, the China team of Sequoia Capital currently manages about $2 billion in overseas funds and nearly RMB 4 billion in domestic funds to invest in high-growth enterprises in China. The partners and investment team of Sequoia China have both the vision of international economic development and the experience of local start-ups. Since its establishment in September 2005, Sequoia has invested in many representative high-growth companies in the fields of science and technology, consumer services, health care and new energy/clean technology. Sequoia China's portfolio includes Sina.com, Alibaba Group, JD.COM Mall, Vipshop, Douban.com, noah wealth, Gaode Software, Le Bee.com, Qihoo 360, Ganzhao Optoelectronics, Focus Technology, Volkswagen Comment.com, China Linong Group, rural catering, Skye.com, Bona Film and Television, Kaifeng Pharmaceutical, Qinchuan Machine Tool, Happy Shopping, Grasshopper Drought Relief, Peak Sports, etc.

Are investment institutions and financial institutions the same concept or different? How to distinguish them?

Investment institutions or institutional investors refer to non-natural person legal person investors, and financial institutions are investment institutions because they are not natural persons when they are investors; However, investment institutions are not necessarily financial institutions. Financial institutions have the function of financing, and the institutions that allocate funds can be called financial institutions, such as banks, securities companies, insurance companies, fund companies, trust companies, etc. But ordinary companies can also be investment institutions, but not financial institutions.

What are the basic elements of venture capital?

Novices must understand the elements of venture capital before entering the venture capital industry. Only by understanding the elements of venture capital can they further explore the whole venture capital.

1, venture capital

Venture capital refers to a kind of capital provided by professional investors for fast-growing emerging companies, which has great appreciation potential. Venture capital enters these enterprises by purchasing equity, providing loans or providing loans after purchasing equity.

There are two kinds of venture capital: direct investment fund and guarantee fund. The former enters the invested enterprise through the purchase of equity, mostly private capital; The latter helps the invested enterprises by providing financing guarantee, most of which are * * * funds.

2. Venture capitalists

Venture capitalists can be mainly divided into venture capitalists, venture capital companies, industry-related investment companies and angel investors, among which venture capitalists and venture capital companies are the most common.

Venture capitalists are entrepreneurs who invest in other entrepreneurs. Like other venture capitalists, they make profits by investing. But the difference is that the capital invested by venture capitalists belongs to themselves, not the capital entrusted for management. Then most venture capital companies invest through venture capital funds, which are generally organized in the form of limited partnerships.

3. Investment period

The investment cycle of venture capital is called the time interval from venture capital investment to investment withdrawal. As a kind of equity investment, venture capital has a long term. Among them, venture capital in the initial stage usually enters maturity within 7- 10 years, while the follow-up investment is mostly only a few years.

4. Investment purpose

Although venture capital is a kind of equity investment, the purpose of investment is not to obtain the ownership of the enterprise, to hold shares or to operate the enterprise, but to enlarge the investment enterprise by investing and providing proliferation services, and then to withdraw through public listing, mergers and acquisitions or other means to realize the return on investment of property rights flow.

Simply put, venture capitalists help enterprises grow, but ultimately seek channels to recover their investment in order to achieve value-added.

5. Investment model

From the nature of investment, there are three ways of venture capital: first, direct investment. The second is to provide loans or loan guarantees. The third is to provide some loans or guarantee funds at the same time. But no matter what kind of investment, venture capitalists generally provide value-added services.

There are two different ways to enter venture capital. The first is to put venture capital into the invested enterprise in stages, which is relatively common, which can not only reduce the investment risk, but also help accelerate the capital turnover; The second is one-time investment. This method is not common, and ordinary venture capitalists and angel investors may adopt this method. After an investment, it is difficult and unwilling to provide follow-up financial support.

What's the difference between venture capital firms and investment banks?

Different qualifications. Investment banks will be much stricter. What they value is your mortgaged property, while people and projects are valued by venture capitalists.

What is the wind system?

Venture capital is venture capital. If starting a company requires someone to pay and someone to contribute, then venture capital is the person who pays; Then get a certain share and make a profit through the growth of the enterprise. Because the enterprise may also lose money, and the money invested can't be recovered, it is risky, so it is called venture capital.