Private placement financing is carried out by private placement, and its financing target is individuals or institutions with investment strength. At present, there are more and more individuals and organizations with capital in China, such as government capital, social security fund and private capital.

I. Government capital

Private equity funds come from two forms of government capital. One is the direct investment provided by the government to promote the development of science and technology or promote industrial progress, including financial allocations from the central government and governments at all levels, national science funds, national science and technology projects, etc. Secondly, the establishment of private equity investment institutions by government participation has become one of the most important components of private equity investment institutions in China.

Second, the social security fund.

Social insurance fund is the main body of social security fund in China, including endowment insurance fund, unemployment insurance fund, medical insurance fund, maternity insurance fund and industrial injury insurance fund. In 2009, China Social Security Fund was allowed to invest no more than 65,438+00% of its total amount in the private equity fund market.

Third, financial capital.

The main bodies of China financial institutions participating in private equity investment mainly include commercial banks, securities companies and insurance companies. They mainly participate in equity investment in two ways: one is to set up a science and technology venture loan fund instead of government functions and issue loans for science and technology projects; Secondly, directly participate in the investment of high-tech projects with less risk. In recent years, a variety of financial capital has been allowed to set foot in the field of equity investment.

Four. Non-financial enterprise capital

The capital of non-financial enterprises mainly comes from joint-stock companies, limited liability companies and other types of enterprises. Through self-financing, some private high-tech enterprises have invested in private equity. In order to realize the strategic adjustment and sustainable development of enterprises, many large enterprise groups have been investing in private equity, such as Lenovo, Baidu, Alibaba, Tencent and Shougang.

Verb (abbreviation of verb) private capital (private enterprise/rich people)

The wealthy in China have accumulated considerable assets and abundant private capital. However, due to the immature capital market in China and the lack of diversified investment channels, the investment amount of private equity funds is increasing. Although the capital scale of private capital is smaller than that of institutional investors, it is large in quantity and flexible in investment decision. With the abundance of private capital, the private capital industry that invests in private equity funds has increased year by year.

Intransitive verb foreign capital

Foreign investment in private equity funds in China refers to the capital provided by overseas enterprises (including Hong Kong, Macao and Taiwan) and wholly foreign-owned joint ventures and cooperative institutions established in China. Early venture capital and private equity investment in China were introduced from overseas capital and developed on this basis. After entering 2006, the proportion of foreign capital in the sources of private equity investment funds in China began to decline year by year, while the proportion of local capital increased year by year.