Corporate financing

Venture capital (VC), also known as venture capital funds. Today, the direction of venture capital has gradually shifted from traditional industries to the field of high-tech entrepreneurship, which is an important way to obtain high returns on investment.

Characteristics of venture capital

Investment target: Small and medium-sized enterprises in the start-up stage, mostly high-tech enterprises

Investment term: 3 to 5 years or more, usually through equity investment, usually accounting for 15% -30% equity of the invested enterprise, without the requirement to obtain controlling rights

Investment Decision: Built on Expert Evaluation

Investment relationship: The investment company actively participates in the operation and management of the invested enterprise, and provides value-added services

Investment strategy: Based on the different development stages of the invested enterprise (such as seed stage, creation stage, growth stage, expansion stage, maturity stage), determine the investment method and scale to achieve the goal of reducing investment risks

Investment return: Obtaining investment dividends is not the goal it pursues, but rather withdrawing investment through listing, acquisition, merger, or other equity transfer methods of the invested enterprise

Venture capital methods

In stages and batches, directly invested in the invested enterprise

Obtaining bank loans through guarantees from venture capital firms

Partial guaranteed loans and partial direct investments

Venture capital guidelines

A market with development potential

Technology is tailored to the needs of the market

Can establish market advantages

Can become a market leader

The management has talent and foresight

With generous returns

Steps to attract venture capital

Familiarize oneself with the financing process

Showcasing enterprise value

Writing a business plan

Selling enterprises

Value assessment and due diligence

Transaction negotiation

Sign an agreement