Venture Capital is considered a part of private equity and wherever venture capital exists, but many misconceptions stem from the fact that private equity is not always considered venture capital. Both terms are used to identify a type of investment into companies that are privately held.
Venture capital is financial invested into new concepts whereas private equity is invested toward ideas that have already been developed and established. In venture capital, the outlook of the company’s growth is usually an optimistic one, and the expectancy for development is rapid. Private equity is different because it is based on investing in an idea that has already been around and proven successful. The rapid growth expectancy that comes with venture capital is a few years.
Venture Capital Explaine...Read More