What do VC, PE and angel investment mean? What's the difference

1.VC: refers to venture capital, which is mainly a financing method to provide financial support for start-ups and obtain shares in the company.

2.PE: PE is usually translated as equity investment in a narrow sense in China, that is, "private equity investment", which refers to an investment method of investing in unlisted equity or privately traded equity of listed companies. The source of funds for private equity investment is to raise funds by non-public offering for natural persons with risk identification ability or institutional investors with affordability.

Third, angel investment is a form of equity capital investment. Refers to the person who has a certain net wealth and makes early direct investment in high-risk start-ups with great development potential.

4. There are three differences between 4.VC, PE and angel investment:

1, which are different in nature:

(1) The nature of VC investment: a form of private equity investment.

(2) Nature 2)PE investment: it belongs to private equity investment.

(3) The nature of angel investment: angel investment is a form of venture capital.

2, the characteristics of the three are different:

(1) Characteristics of venture capital: Generally speaking, venture capital is invested in high-tech start-ups, whose founders 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.

(2) 2) Characteristics of PE investment: First, the investment cycle is long. Whether it is stocks or real estate, investors will not hold it for a long time. And PE investment generally takes five to seven years. Secondly, the amount of PE investment is large. For example, we will cooperate with Safran Fund to raise a PE investment product, and the threshold is100000 yuan.

Again, there are risks. Because the ultimate income of PE investment mainly depends on acquisition, merger and listing. Among them, there are many variables and great fluctuations. Coupled with the long investment cycle, PE investment is risky.

(3) Characteristics of angel investment: angel investment is the pioneer of venture capital. When the idea of starting a business is still in the entrepreneur's notebook or mind, venture capital is difficult to manage. At this time, some individual investors are like angels with wings on their shoulders, flying around to "deliver babies" for these enterprises.

Investment experts have a metaphor, such as investing in a student, venture capital companies focus on college students, institutional investors favor middle school students, and angel investors train infant primary school students.

3. These three modes of operation are different:

(1) Operation mode of venture capital: 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.

(2) Operation mode of PE investment: Due to the private nature of PE investment, traditional PE investment is not strongly dependent on bank channels. With the entry of PE investment into China, the demand of some overseas PE investment institutions to set up RMB funds is increasing, which will inevitably lead to the pursuit of high-net-worth customers, and private banking customers are undoubtedly the best candidates.

From the perspective of providing asset allocation services for high-end customers, banks have also launched PE investment projects for such products to high-end customers in a timely manner. However, this threshold is relatively high, generally only for customers with total financial assets of more than 50 million yuan.

(3) Operation mode of angel investment: According to the situation in the United States, it is generally stipulated that the total assets of angel investors are generally above $6,543,800+0,000, or the annual income is between $200,000 and $300,000. According to the investment amount of your project, you can choose some types of angel investment as a reference.

Baidu encyclopedia-venture capital

Baidu encyclopedia -PE investment

Baidu Encyclopedia-Angel Investment (Investment Form)