Today's high-tech, there is a large proportion will be linked with the IT industry. With the rapid development of the Internet and other high-tech, IT industry enterprises have become the darling of venture capital, many venture capitalists are trying to choose it, what the IT industry, what kind of charm? We take a look.
So what is the risk of investment? We look at the concept of it:
Venture capital (Venture Capital) is referred to as VC, it is a concept in China with particular connotation of a convention, in fact, translate it into venture capital would be more appropriate. Broadly refers to all the investment risk, potentially high investment returns with high risk; risk investment refers to the narrow sense of the high-tech-based, technology-intensive production and management of investment products. According to the definition of the US National Venture Capital Association, venture capital is invested by the professional financiers to the new, rapidly growing, with great competitive potential of one of the companies' equity capital.
Value of raw materials and production costs in the IT industry relative to its value of the product is very small, after removing the profit is very high salaries. The wave of globalization and advances in high technology further increases the profitability gap of many traditional industries and IT industry. In contrast, many traditional industries already saturated market and technology mature, gradually reduce profit margins, triggering a crisis in the industry itself.
Venture capital VC, PE, including equity investments in Silicon Valley to create a miracle for all to see, the reason why the IT industry will cause concern venture capitalist, that is, because of its high credit risk for banks retreat avoided, but its high-growth, high revenue is in line with venture capitalists investment philosophy. IT industry relates to the field wide, strong leading role, for investors, if successful will be able to reap huge gains, so are a lot of venture capitalists of all ages.
