Nowadays, many people quit their stable jobs in the office and start their own shops as bosses. Entrepreneurship requires a person's ability and psychological quality is very high. Of course, these are not enough. You must have enough funds to run your small business. Which way should we choose to absorb funds at this time? Go to the bank for a loan or find a venture capitalist? Let's look at the advantages and disadvantages of these two methods. It is a normal business phenomenon that starting a business requires funds. First of all, I want to give entrepreneurs a suggestion, that is, don't give them the impression that banks are unattainable. We should actively communicate with banks so that banks can master their actual demand trends. The target customers of each bank are different. You can contact some banks and find the right partners. Venture capital is a concept with specific connotation in China, but it is more appropriate to call it venture capital. Venture capital in a broad sense generally refers to all high-risk, high-potential investments with annualized expected returns; In a narrow sense, venture capital refers to the investment in the production and operation of technology-intensive products based on high technology. According to the definition of American National Venture Capital Association, venture capital is a kind of equity capital invested by professional financiers in emerging, rapidly developing enterprises with great competitive potential. So what's the difference between venture capital and bank loans? The differences are as follows: first, bank loans stress safety and avoid risks; Venture capital, on the other hand, prefers high-risk projects and pursues high expected annualized expected returns hidden behind high risks, aiming at managing and controlling risks. Secondly, bank loans are based on liquidity; However, venture capital is characterized by poor liquidity and seeks growth in relative poor liquidity. Third, bank loans pay attention to the current situation, capital turnover and repayment ability of enterprises; And venture capital looks at the expected annualized expected return and high growth in the future. Fourth, bank loans are assessed by physical indicators; Venture capital examines whether the management team of the invested enterprise has the management level and entrepreneurial spirit, and examines the future market of high technology. Finally, bank loans need mortgages and guarantees, which are generally invested in growing and mature enterprises, while venture capital does not need mortgages and guarantees, but invests in emerging enterprises and high-growth projects.