What is financing? What is fundraising? What is the difference between the two? thanks

Financing

In a narrow sense, financing is the behavior and process of fund raising of an enterprise.
In broader, financing is also called finance, which is the integration of monetary funds. The parties have raised or loaned funds in the financial market in various ways.

refers to the process of a private equity company seeking a limited partner's fund commitment for the fund. The company often sets a goal at the beginning of fundraising, and eventually announced how much funds subscribed by. This may no longer accept additional funds. But sometimes the company has a specific target at a time, and there will be a mid -term deadline (the first deadline, the second deadline, etc.) and the final deadline. The upper limit of fundraising is the largest capital that the company can accept.

The differences between the two
If financing refers to the method of raising funds from the external enterprise, including direct financing and indirect financing, of which: direct financing mainly refers to direct fund holders, such as shareholders such as shareholders, such as shareholders 2. Investors and other methods of raising funds, such as issuing stocks in the stock market to obtain funds for the development and operation of enterprises; indirect financing mainly refers to through financial institutions, such as banks, financial companies, trust companies, etc. Short -term borrowing, issuing bonds, etc. to obtain funds.

The fundraising activities include in addition to raising funds from the enterprise, that is, financing, it should also include reasonable arrangements for internal funds within the enterprise, such as after -tax profits, depreciation, investment income, etc. to raise enterprises to raise enterprises In order to develop the funds of a certain project, the financial arrangement is made.

From this perspective, the concept of fundraising is greater than the concept of financing.
The financing and financing in the narrow sense are often mixed in reality, which means the same means.

In narrowing, financing is the behavior and process of fundraising of an enterprise.
If financing is funding and finance.
In broad, financing includes the integration and integration of funds.
In narrow, financing mainly emphasizes the integration of funds. The economic essence of financing issues is the transformation of savings to investment. According to the different financing entities, it can generally be divided into government financing, corporate financing and personal financing. Enterprise financing is a financing activity for enterprises as financial entryrs. The requirements of the development strategy, through certain channels and methods, use an internal accumulation or an economic activity to raise funds required for production and operation from investors and creditors of enterprises.