Failure after financing does not require repayment according to procedures, and the risk is borne separately. But this is not the case in reality. People who invest after failure will chase after money. Therefore, to sign a contract, it is necessary to standardize the risk ratio and benefit distribution ratio of all parties. In principle, venture capital companies bear a high proportion of risks and have high returns.

Financing is the behavior and process of raising funds for enterprises. That is, according to the company's own production and operation situation, capital possession situation and the needs of the company's future operation and development, through scientific prediction and decision-making, the company adopts certain methods to raise funds from the company's investors and creditors through certain channels and organize capital supply to ensure the company's normal production needs and financial management activities.

Extended data:

Financing mode

Ordinary type

1, bank loan

Banks are the main financing channels for enterprises. According to the nature of funds, it is divided into three categories: working capital loans, fixed assets loans and special loans. Special loans usually have specific purposes, and their loan interest rates are generally favorable. Loans are divided into credit loans, secured loans and discounted bills.

2. Stock financing

The stock is permanent, has no expiration date, does not need to be returned, and has no pressure to repay the principal and interest, so the financing risk is small. The stock market can promote enterprises to change their management mechanism and truly become a legal entity and market competition subject with independent operation, self-financing, self-development and self-restraint. At the same time, the stock market provides a broad stage for asset reorganization, optimizes the organizational structure of enterprises and improves the integration ability of enterprises.

3. Bond financing

Corporate bonds, also known as corporate bonds, are securities issued by enterprises in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time, indicating that there is a creditor-debtor relationship between the issuing enterprises and investors. Bondholders do not participate in the operation and management of the enterprise, but have the right to recover the agreed principal and interest on schedule. When an enterprise goes bankrupt and liquidates, creditors have priority over shareholders in claiming compensation for the remaining property of the enterprise. Corporate bonds, like stocks, are securities and can be freely transferred.