Compared with traditional financing channels, financing is fast, the procedures are simple, no interest is required, and venture capital may also provide management support to the company, etc.

1. The so-called venture capital refers to a kind of equity capital invested by professional financiers in emerging, rapidly developing enterprises with huge competitive potential;

2. Venture capital institutions are the core institutions in the venture capital system. They are financial intermediaries that connect the source of funds and the use of funds. They are the most direct participants and actual operators of venture capital, and they also bear the risks and share the benefits most directly;

3. my country’s current venture capital institutions include five categories: ***-funded venture capital institutions; privately-funded venture capital institutions; foreign-funded venture capital institutions; venture capital institutions funded by listed companies; financial system-funded venture capital institutions;

4. In order to encourage venture capital and actively expand financing channels for small and medium-sized enterprises, the state encourages venture capital institutions to increase investment in small and medium-sized enterprises through tax policies.