The concept of venture financing refers to the financing behavior and process of start-up enterprises, that is, start-up enterprises raise funds from creditors or investors through scientific prediction according to their own financial situation, production and operation conditions and the needs of the company's future operation and development, so as to ensure the normal production and operation activities of the company.

In this process, in order to obtain financing, start-ups must evaluate the value of the enterprise in advance according to the situation of the enterprise and the ability to create cash flow in the future. Investors can provide certain funds to start-ups according to this evaluation and certain experience and norms, and at the same time ask for the corresponding equity or bond income of enterprises.

What are the ways of risk financing?

Risk financing mainly includes internal financing and commercial bank financing.

① Internal financing: For start-ups, internal financing has the advantages of good turnover and low cost, but it is risky.

② Commercial bank financing: The main source of external financing for startup companies is bank loans. Compared with other external financing methods, bank loans have the advantages of low cost and high speed. However, non-listed companies are generally small in scale and assets, so it is difficult for non-listed companies to obtain bank loans.