
Venture capital is a form of private equity investment focusing on start up companies which has high growth potential along with high risk and high reward.

Whereas Private Equity is a form of investment in mature companies with established business models by acquiring major equity stock.
Both venture capital and private equity are funding investments for private companies that will exit by selling their holdings.However depending on the stage of a company, growth potential, establishment and risk appetite a company seeks funding from private equity and venture capital.
Private equity focus on improving the operational efficiency by strategic redirection, cost cutting initiatives.
Venture capital works closely with the management and helps the start-up companies by providing access to public market.
Venture capital and private equity play an integral role in the financial market. They help those business seeking growth and development. Venture capital and Private equity promote economic growth and generate profitable returns for investors.
They play a pivotal role in the development of small and medium scale companies and critical industries.
They help provide a room for novel innovations by funding which in turn leads to better GDP, new investments, research and development and generates more employment opportunities.

Leave a comment