Chapter 280 Illegal Fund Raising and Venture Capital

Whether it is mining, planting trees and raising ants, this kind of private business is based on high returns as a selling point. Generally speaking, as long as the profit rate of return exceeds common sense, it may exist. of illegal fund-raising.

Regarding illegal fund-raising, many people’s earliest impressions are from the early 1990s. At that time, the domestic financial order had just been established, and some criminals took advantage of the troubled waters to fish in troubled waters. It became a characteristic of the time that the government and businessmen colluded to create the illusion of prosperity and raise funds from the masses who did not know the truth. The shocking 3.2 billion illegal fund-raising case of Mrs. Deng Bin in Wuxi attracted nationwide attention and led to the rectification of the national financial system. This was also the first major wave of illegal fund-raising.

Of course, not all funds raised are lost. In Lishui, Zhejiang, locals raised funds to invest in the construction of small hydropower projects and made extremely huge profits. At that time, the policies were neither comprehensive nor standardized, and the profits from investing in small hydropower stations were extremely high. At first, ordinary people did not know about these things, and the main participants were government civil servants.

How high were profits at that time? For example, if you invest 10,000 yuan at the beginning of the year, you may get up to 100,000 yuan at the end of the year. Many civil servants who originally earned a few hundred yuan a month became high-income earners in Lishui and later played an important role in Lishui's business and private investment. This has a lot to do with the profits they made from their investments back then.

Until now, Lishui is still known as the largest small hydropower city in China. In Jinjiang County, Lishui alone, there are 120 small hydropower stations. In recent years, Lishui small hydropower investment has begun to export funds to other provinces to earn profits.

As for the illegal fund-raising case of Mrs. Deng Bin, which has the greatest impact and has the largest number of cases involved, it was formally filed in August this year and is still in progress.

Mrs. Deng Bin of Wuxi Emerging Company was already fifty-seven years old at the time. The major illegal fund-raising case she led swept through the southern Jiangsu region like a tornado.

Relying on his strong political backing, Deng Bin used high returns as bait to defraud more than 3.2 billion in fund-raising funds under the guise of supporting economic construction. In the two hardest-hit areas of Wuxi and Jiangyin, units were destroyed one after another, many of which were advanced models interviewed by the national media. To be fair, it's hard to blame them for not being vigilant. It's really because Deng Bin has such a great background and is too deceptive.

Although the case has not come to an end yet, the high-level investigation into Wuxi Deng Bin’s fund-raising case is nearing completion. Deng Bin, as a female worker in a street factory, would not have the energy to raise 3.2 billion yuan. The task force moved all the way up the row, and the backstage people hiding behind Deng Bin appeared one by one. Zhou Beifang, known as Zhou Gongzi in Hong Kong's wealthy circles, Chen Jian, the secretary of the Communist Party of China, and He Shiping, another secretary to a high-ranking official, made a series of appearances. The powerful figures in Beijing have been arrested one after another.

And the problems of the people behind them, Wang Baosen and ** also emerged. More than 50 officials at or above the prefectural level were involved in the case.

Just like the monsters Sun Wukong encountered in "Journey to the West". Every time the golden cudgel is about to hit the guy's head. There is always a god from the sky floating down to help.

Deng Bin is just a brat. But she has someone in heaven.

Want to be rich. Build the road first. A high-ranking official in heaven. Roads need to be built in the market above ground. Get some white gloves. And those who want to break through the legal rules and get rich suddenly. Roads must also be built. Build a road to heaven and earth. In this way, the two sides hit it off immediately. Naturally, you can do something earth-shattering.

Although until now. Deng Bin’s case has not been made public. But this does not prevent Fan Wubing from having a deeper understanding of this matter. He knows a lot about these things. Far more in-depth than dad Fan Heng. Although Fan Heng is already a leading cadre at the ministerial level. But he is on the channel to obtain information. Much inferior to Fan Wubing.

Because of the problems between Shen Taifu and Deng Bin. National legislation began to regulate private fund-raising activities. The "Commercial Banking Law", the "Decision on Punishing Crimes that Disrupt Financial Order", and the "Criminal Law" stipulate three crimes: illegally absorbing public deposits, fund-raising fraud, and issuing stocks, companies, and enterprise bonds. It also stipulates relevant administrative law enforcement and legal responsibilities in the place where private fund-raising occurs. The State Council's "Measures for the Suppression of Illegal Financial Institutions and Illegal Financial Business Activities" also proposed the concept of a place to absorb public deposits in disguised form. The Supreme People's Court issued the "Minutes of the National Court Symposium on Trial of Financial Crime Cases". The Supreme People's Procuratorate and the Ministry of Public Security issued the "Regulations on the Standards for the Prosecution of Economic Crime Cases."

Illegal fund-raising cases that occurred in the economic field and market have been cracked down in accordance with the law. Along with the strength of the blow. Illegal fund-raising cases show ups and downs. But it did not disappear.

Overall. Some private fund-raising activities involve directly absorbing funds through high-interest loans. Some places absorb funds through bank securities, membership cards or debt certificates. There are also places where properties, real estate and other assets are equalized. Raise funds at high interest rates by selling the disposal rights of its shares. Others use private associations, societies and other organizational forms to raise funds. There are also ways to raise funds through bank or disguised lottery. Or use orchards and manor land to raise funds, etc.

"Panshi's current private fund-raising is mainly focused on the construction of coal mines, iron mines, and small hydropower. These projects have a lot to do with luck, so the returns are often uncertain." Fan Heng said to his son Fan Wubing.

Panshi's situation is also related to government guidance. Everyone can see how big the return on investment in coal and iron is. Once the opening of small coal mines is opened, money will be dug out every day. You only need to pay a little labor cost every day, at most a little electricity bill, etc., and all you get out is money.

Not many people can resist this kind of temptation, so people who participate in fund-raising flock to it, and the rate of return offered by the fund-raiser is also very high, about 50% annual interest, which attracts Many people participate.

"This trend cannot last." Fan Wubing frowned and said to his father Fan Heng, "The most important point is that the purpose of this illegal private fundraising is impure. This collective investment for common prosperity is It is different, but an illegal means to interfere with normal international financing activities for the purpose of short-term profit. Now the country is vigorously rectifying this kind of limelight, and we, Panshi, cannot open this hole. Moreover, once something goes wrong, the interests will be damaged. Ordinary people, they don’t know who will bear the responsibility, and the government will have to come forward to solve the problem for them."

"I'm having people sort out the materials in this area, and I'm also asking the superiors for relevant handling policies, so as to put an end to this unhealthy trend as soon as possible." Fan Heng said to his son.

Fan Wubing nodded, but there was something else in his mind.

state system

The regulations and law enforcement actions governing private fund-raising activities are undeniably based on the concept of financial business franchising and strengthening financial supervision, with little consideration of the purpose and results of private fund-raising activities.

The characteristic of this kind of national law is that it does not consider whether the investors use the funds for production operations, public welfare undertakings, or other purposes. However, it has a strong regulatory rather than a guiding color. It also pays less attention to the private economy, small and medium-sized enterprises, and small and medium-sized enterprises. The company has legitimate financial interest needs and the reality of lack of financial channels.

In fact, existing formal financial institutions cannot solve the legitimate financial interest needs of the private economy and small and medium-sized enterprises in terms of channels and service methods.

Just like Wanyan Company, a high-tech private enterprise, if it were not for the lack of convenient financing channels, it would not be so dilapidated that it would need to be sold at a low price. If Fan Wubing had not helped him, the end would have been the same. It can be expected that, as before, it will gradually fall into the category of third-rate enterprises and gradually disappear in the long river of history.

Fan Wubing thought of this incident and casually chatted with his father Fan Heng, and then said to him, "The domestic economic order has just been established, and there are imperfections in many places. These deficiencies or loopholes, It is easy to breed corruption and create deformed social products."

"Then what suggestions do you have? How do foreign countries generally deal with these things?" Fan Heng asked with great interest.

"Abroad, there are many financing channels, and the most common one is venture capital." Fan Wubing replied.

The abbreviation of venture capital is a concept with a specific connotation by convention. In fact, it is more appropriate to translate it into venture capital.

In a broad sense, venture capital refers to all investments with high risk and high potential returns. In a narrow sense, venture capital refers to investment in the production and operation of technology-intensive products based on high and new technologies.

According to the definition of the National Venture Capital Association, venture capital is a type of equity capital invested by professional financiers in emerging, rapidly developing enterprises with great competitive potential.

From the perspective of investment behavior, venture capital is a type of investment that invests capital in the research and development of high-tech and its products that contain risks of failure, aiming to promote the commercialization and industrialization of high-tech achievements as soon as possible in order to obtain high capital returns. investment process.

From the perspective of operation mode, it refers to the process of investing venture capital into high-tech enterprises with special potential by investment intermediaries under the management of professional talents. It also coordinates the relationship between venture capitalists, technical experts, and investors to share benefits and risks. a form of investment.

Venture capital generally operates in the form of venture capital funds. The legal structure of a venture capital fund is in the form of a limited partnership, and the venture capital company serves as the general partner to manage the investment operations of the fund and receive corresponding remuneration. In the United States, venture capital funds that adopt limited partnerships can obtain tax benefits, and the government also encourages the development of venture capital in this way.

Venture capital is a type of equity capital, not loan capital. Venture capital generally accounts for more than 30% of the total capital of a venture enterprise. For high-tech innovative companies, venture capital is an expensive source of capital, but it may be the only viable source of capital. Although bank loans are relatively cheap, bank loans avoid risks and put safety first, so high-tech innovative enterprises cannot obtain them.

"Bank loans emphasize safety and avoid risks, while venture capital prefers high-risk projects and pursues high returns hidden behind high risks, aiming to manage risks and control risks. Bank loans focus on the current status of the company, its current capital turnover and solvency, while venture capital looks to future returns and high growth.

Bank loans assess physical indicators, while venture capital assesses whether the management team of the invested enterprise has management skills and entrepreneurial spirit, and assesses the high-tech future market. "Fan Wubing explained to his father Fan Heng, "The most important point is that bank loans require mortgages and guarantees. They are generally invested in companies in the growing and mature stages, while venture capital does not require mortgages or guarantees. It invests in emerging and promising companies. High-growth enterprises and projects. "

Fan Heng frowned when he heard this, and asked Fan Wubing, "So, the venture capital capital may not be able to be recovered smoothly, right? Is this the so-called risk?"

Fan Wubing nodded and replied, "That's true. It's just like gambling. If you be willing to accept defeat, if you win, you will get a huge profit. If you lose, you may go home naked. It's that simple."

Then Fan Wubing said to his father Fan Heng, "Risk and reward are always complementary to each other. There can be no good things for nothing in the world. Since you want to pursue profits, you should see the huge risks hidden behind the profits. At this point, foreigners have already been ahead of us."

Fan Heng lay on the sand and tapped his fingers on the backrest. After a long time, he suddenly asked, "Wu Bing, you should have a lot of money now, right?"

"Yes, many, many." Fan Wubing smiled and nodded.

He knew what his father Fan Heng meant, so Fan Wubing thought about it and said, "If I cash out, I can probably gather around 300 billion U.S. dollars of wealth, but if I wait four or five years, these will The total amount of wealth will gradually increase to more than one trillion US dollars."

After hearing what his son said, Fan Wubing was silent for a long time. After a while, he smiled bitterly and said, "The country's foreign exchange reserves are only 30 billion US dollars. You are really good! Hey, these four people are as rich as the country." This word is actually used to describe my son? Hehe, this is really something I never dreamed of!"

Fan Wubing smiled and did not say anything modest. His estimate was still conservative. At least the value of the acquired Internet companies was enough to exceed the value of one trillion U.S. dollars. Plus some There are hundreds of small companies, but they are all cash cows!

Once the time comes, as long as you take action, you will not have to worry about not having a large amount of funds to develop a brighter industry. All you have to do is wait for a few years.

In addition, you can't let time go to waste. Finding something to do will not only fill your time, but also contribute to your own income.

The first update is delivered today