The elements of venture investment

Venture investment is invested in the Hi-Tech field. The high profit is the inherent impetus of rapid development. Like any other kind of investments, it also needs to have an analysis and research on the environment of investment before entering into it. According to the theory of venture investment elements, the success of a venture investment depends on 6 aspects.

(1) Venture capital
Venture capital is offered to the newly emerging enterprises with high growth and great appreciation potentiality by the professional investors.

(2) Venture capitalist
Venture Capitalist includes: Adventure Capitalists, Venture Capital Firm, Corporate Venture Investors/Direct Investors, and Angel Investment.

(3) Purpose
The purpose of venture investment is not for obtaining the ownership of enterprises, or controlling the interest, or operating the enterprises, but for developing the invested enterprises through investing and providing the added value service, then realizing the investing payback in the flow of property right through public list, mergers and acquisitions or other ways of withdraw. According to the view of venture capitalist, the purposes of founder are: First, attract the venture capital and speed up the supernormal development of small and medium enterprises; Second, speed up the feasible change of technology to the production and craft; Third, extend the scale of production and go on the market as soon as possible to make the profits; Fourth, hope to recycle the profits in the development, production and sale constantly; Fifth, the founder hopes to control the dominating and operating right in the development of enterprises for a long time.

(4) Deadline of investment
The deadline of investment refers to the whole period from investing to withdrawing.

(5) Object of investment
The main object of investment is the high-new tech corporation in the high-new tech industry. For example, Cheng Siwei thinks that the venture investment of China at present should support the development of all kinds of high-tech enterprises with real innovative technology, market and competitive power, promote the combination of technology and finance, strengthen the technological level of Chinese traditional industry, occupy the commanding point of technology, and push forward the strategy that revitalize the country with science and education.

(6) Way of investment
Looking from the nature, the venture investment includes direct investment, loan and loan guarantee. Looking from the way, it can be invested by installments or in onetime.

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