First of all, enterprises should have high growth, that is, the company can reach a certain scale of operation in a relatively short time; Secondly, the invested enterprise must have a certain competitive advantage.

2. The market the enterprise faces is good enough.

A good market is the first condition to achieve a good product. It is best for enterprises to face the following markets: (1) It can provide enough development space for risky products; (2) High growth; (3) It is easy to accept products (or services) that are about to enter the market, and at the same time it can form a high barrier to the imitation of followers of products (or services); (4) The market can maintain a certain level of competition, and the competition faced by enterprises includes both the competition of similar products and the competition of substitutes.

3. Have an excellent team of entrepreneurs.

"I would rather invest in first-class talents and second-class technology than first-class technology and second-class talents." The slogan of private equity investment is enough to see the importance of enterprise management team. The evaluation of the leader of an enterprise, that is, the entrepreneur, requires him to have the following qualities: (1) Strategic thinking, which is generally reflected in the corporate culture and business philosophy. Therefore, choosing an entrepreneur with long-term strategic vision will play a very important role in ensuring the expected future return of investment; (2) Resource integration ability, including management ability, marketing ability, market adaptability, public relations ability, risk foresight and prevention ability and technological innovation ability; (3) Personal qualities. An entrepreneur with good personal qualities should be loyal, upright, courageous, quick-thinking, firm-minded, persistent, energetic, optimistic, open-minded and pragmatic.

The enterprise is in good financial condition.

An enterprise without financial planning is an enterprise without financial direction. When analyzing and evaluating the financial situation of small and medium-sized enterprises, at least the following aspects should be considered: (1) current assets, liabilities and equity ratio of enterprises; (2) Changes in assets, liabilities and rights and interests of the enterprise in the last three years; (3) The ratio of assets, liabilities and equity after providing investment; (four) the plan for the use of funds; (5) The break-even between relevant profit and loss and cash flow; (6) Other financing plans; (7) Profit forecast and return on assets analysis; (8) Possible ways, opportunities and benefits for investors to recover funds.