Where is the dividing line between venture capital and illegal fundraising?

Red Tripod Venture Chairman Liu Xiaoshen May 4 only because of suspected illegal fund-raising surrendered himself. Peat, peat.　　May 10, Shanghai Hui Le Investment Group chairman, the executive partner of Hao Capital for illegal absorption of the public deposit crime, by the Shanghai Public Security Bureau by the investigation department from the ongoing in an equity exchange signing ceremony, and was detained. According to Caijing Magazine's survey, there may be three points in the suspected illegal absorption of the red Line: first, the number of shareholders over the "Venture capital Enterprise Management Interim Measures" (hereinafter referred to as: "The Management of investment") stipulated that the upper limit of 200 people; the second is to raise funds to the target, and commitment to fixed income; third, the shareholder contribution is lower than the　　The lower limit of 1 million yuan is stipulated in the management method of venture investment. The operation originally looked very civil, but the news is eye-catching, but also because the chairman of Hao's another identity is the executive partner of Tak-thick capital. Random Google, you will find that since the establishment of Tak thick capital, has been the government to guide the fund investment in private equity funds (PE) in the name of many news media reports.　　Of course, the matter is so big, the government departments have naturally come forward to declare that they are not related to the matter, and did not have a commitment to investment and so on. We actually do not have to investigate what the relationship between music and Germany, the Government to guide the Fund has no investment commitment and so on, those are the tasks of Shanghai Economic Investigation Department. A slap doesn't ring. As the industry, whether the fund managers or investors, both may have to rethink.　　In particular, investment in this industry, is a high demand for commercial credibility of the industry, once involved in the "illegal fund-raising" charges, is undoubtedly the credibility of the parties involved in a huge damage. The first thing I think about is, what is the illegal fund-raising? The reference law quoted in the media report is the "Venture Investment Management Method". This method from the name indicates that it is the management of venture capital institutions, that is, the so-called VC. So now the more fire of PE, that is, private equity investment fund management measures? Consult a circle of lawyers, the answer is, not yet. The Securities Investment Fund Act of 2004 is about the legal norm of public offering fund, which is not covered by the legal norms of private equity fund. So, in the absence of a set of laws and regulations specifically aimed at PE, what should be done according to that law?　　Without such a regulatory law, would it be easy to step on the red line of "illegal fundraising"? should be equal to VC processing? This is also a trick. However, according to the traditional classification of the financial industry, VC is in fact a major branch of PE.　　The PE will be treated as VC, it sounds a bit like let mother act according to the son's behavior standard. Of course, we can still use the United States years of experience, in the United States or Cayman set up a limited partnership fund, according to the legal system there, the old way of offshore funds. Or, like all the forerunners in China, the company's Law, the Partnership Act, the Trust Act, and so on, have triedA variety of PE models, such as division system, limited Partnership system and trust system.　　These methods have been tried, some have been passed, and some have inevitably encountered such or such problems. I am not here to continue to call on all levels of the legislature to quickly consider the enactment of a law on private equity funds, which, of course, is absolutely necessary. According to a number of media reports, our legislature is already considering revising and updating the Securities Investment Fund Act, which is heard to cover private equity investment. What I want to say is, in fact, in the whole development process of China's reform and opening-up, the behavior practice of all walks of life ahead of the enactment of laws and regulations is a normal. In this case, it is an extraordinary test of the wisdom of the various parties. Is strictly in the red line framed in the inside walk, is stepping on the red line, or simply the more lines?　　Each person's choice may determine the fate of the individual or his or her business. One of the lessons I've learned is that fund managers, whether VC or PE, in the collection of funds, must seriously study and illegal fund-raising-related law, namely: the criminal law 176th provisions of the illegal absorption of public deposits, as well as the criminal law of the 192th provisions of the crime of fund-raising fraud. At the same time, the notification of relevant issues in the suppression of illegal financial institutions and illegal financial operations should be grasped, as well as the "notice on further combating illegal fund-raising and other activities" and other provisions on illegal fund-raising, as well as the July 10 NDRC issued the latest "strict regulation of venture capital enterprises fund-raising behavior notice."　　Of course, "Venture Investment management measures" to carry a little more proficiency. Although we are essentially law-abiding civilians, it is not good to make mistakes because of ignorance.