{
  "id": 37622,
  "date": "2021-07-13T11:00:00",
  "date_gmt": "2021-07-13T15:00:00",
  "guid": { "rendered": "https:\/\/finance-able.com\/?p=37622" },
  "modified": "2025-12-21T16:57:55",
  "modified_gmt": "2025-12-21T21:57:55",
  "slug": "private-equity-vs-venture-capital",
  "status": "publish",
  "type": "post",
  "link": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/",
  "title": {
    "rendered": "Private Equity vs Venture Capital – The Ultimate Guide"
  },
  "content": {
    "rendered": "\n<p style=\"font-size:18.5px\">Want to understand the differences between <strong>Private Equity vs Venture Capital <\/strong>with&nbsp;<strong>simple, visual, and Plain-English explanations?<\/strong>&nbsp;After reading this article, you will understand:<\/p>\n\n\n\n<div class=\"wp-block-kadence-iconlist kt-svg-icon-list-items kt-svg-icon-list-items37622_038003-03 kt-svg-icon-list-columns-1 alignnone\"><ul class=\"kt-svg-icon-list\">\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_ee2af4-d0 kt-svg-icon-list-style-default\"><span class=\"kb-svg-icon-wrap kb-svg-icon-ic_record kt-svg-icon-list-single\"><svg viewBox=\"0 0 8 8\"  fill=\"currentColor\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><path d=\"M3 0c-1.66 0-3 1.34-3 3s1.34 3 3 3 3-1.34 3-3-1.34-3-3-3z\" transform=\"translate(1 1)\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\"><strong>How<\/strong>&nbsp;<strong>Private Equity&nbsp;<\/strong>vs&nbsp;<strong>Venture Capital<\/strong>&nbsp;funds&nbsp;<strong>operate<\/strong>.<\/span><\/li>\n\n\n\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_1040d0-24 kt-svg-icon-list-style-default\"><span class=\"kb-svg-icon-wrap kb-svg-icon-ic_record kt-svg-icon-list-single\"><svg viewBox=\"0 0 8 8\"  fill=\"currentColor\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><path d=\"M3 0c-1.66 0-3 1.34-3 3s1.34 3 3 3 3-1.34 3-3-1.34-3-3-3z\" transform=\"translate(1 1)\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\"><strong>How \u2018Growth Equity\u2019&nbsp;<\/strong>funds&nbsp;<strong>operate<\/strong>.<\/span><\/li>\n\n\n\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_2c1bef-d6 kt-svg-icon-list-style-default\"><span class=\"kb-svg-icon-wrap kb-svg-icon-ic_record kt-svg-icon-list-single\"><svg viewBox=\"0 0 8 8\"  fill=\"currentColor\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><path d=\"M3 0c-1.66 0-3 1.34-3 3s1.34 3 3 3 3-1.34 3-3-1.34-3-3-3z\" transform=\"translate(1 1)\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\">The&nbsp;<strong>lifecyle \u2018Stages\u2019&nbsp;<\/strong>across which&nbsp;<strong>Venture Capital<\/strong>,&nbsp;<strong>Growth Equity<\/strong>&nbsp;and&nbsp;<strong>Private Equity&nbsp;<\/strong>funds&nbsp;<strong>Invest<\/strong>.<\/span><\/li>\n\n\n\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_14e3e2-35 kt-svg-icon-list-style-default\"><span class=\"kb-svg-icon-wrap kb-svg-icon-ic_record kt-svg-icon-list-single\"><svg viewBox=\"0 0 8 8\"  fill=\"currentColor\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><path d=\"M3 0c-1.66 0-3 1.34-3 3s1.34 3 3 3 3-1.34 3-3-1.34-3-3-3z\" transform=\"translate(1 1)\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\">How the term&nbsp;<strong>\u2018Private Equity\u2019 typically&nbsp;<\/strong>describes&nbsp;<strong>just one type of Investment firm<\/strong>.<\/span><\/li>\n\n\n\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_12761b-c2 kt-svg-icon-list-style-default\"><span class=\"kb-svg-icon-wrap kb-svg-icon-ic_record kt-svg-icon-list-single\"><svg viewBox=\"0 0 8 8\"  fill=\"currentColor\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><path d=\"M3 0c-1.66 0-3 1.34-3 3s1.34 3 3 3 3-1.34 3-3-1.34-3-3-3z\" transform=\"translate(1 1)\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\"><strong>Which firms&nbsp;<\/strong>make&nbsp;<strong>\u2018Minority\u2019 Investments&nbsp;<\/strong>as opposed to&nbsp;<strong>\u2018Majority\u2019 (<\/strong>or \u2018<strong>Controlling<\/strong>\u2018)<strong>&nbsp;Investments<\/strong>.<\/span><\/li>\n\n\n\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_4b8520-ee kt-svg-icon-list-style-default\"><span class=\"kb-svg-icon-wrap kb-svg-icon-ic_record kt-svg-icon-list-single\"><svg viewBox=\"0 0 8 8\"  fill=\"currentColor\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><path d=\"M3 0c-1.66 0-3 1.34-3 3s1.34 3 3 3 3-1.34 3-3-1.34-3-3-3z\" transform=\"translate(1 1)\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\">Why&nbsp;<strong>LBO Funds use Debt&nbsp;<\/strong>to&nbsp;<strong>fund&nbsp;<\/strong>their&nbsp;<strong>Acquisitions<\/strong>.<\/span><\/li>\n<\/ul><\/div>\n\n\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tl-dr\" style=\"font-size:37px\"><strong>TL;DR<\/strong><\/h2>\n\n\n\n<div class=\"wp-block-kadence-iconlist kt-svg-icon-list-items kt-svg-icon-list-items37622_fe0b65-67 kt-svg-icon-list-columns-1 alignnone kt-list-icon-aligntop\"><ul class=\"kt-svg-icon-list\">\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_b6abad-87 kt-svg-icon-list-style-default\"><span class=\"kb-svg-icon-wrap kb-svg-icon-ic_record kt-svg-icon-list-single\"><svg viewBox=\"0 0 8 8\"  fill=\"currentColor\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><path d=\"M3 0c-1.66 0-3 1.34-3 3s1.34 3 3 3 3-1.34 3-3-1.34-3-3-3z\" transform=\"translate(1 1)\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\"><strong>In addition<\/strong> to <strong>Private Equity vs Venture Capital <\/strong>there&#8217;s a <strong>third (in-between) type<\/strong> of firm called &#8216;<strong>Growth Equity&#8217;<\/strong> that we <strong>need to understand<\/strong>.<\/span><\/li>\n\n\n\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_da6f28-9a kt-svg-icon-list-style-default\"><span class=\"kb-svg-icon-wrap kb-svg-icon-ic_record kt-svg-icon-list-single\"><svg viewBox=\"0 0 8 8\"  fill=\"currentColor\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><path d=\"M3 0c-1.66 0-3 1.34-3 3s1.34 3 3 3 3-1.34 3-3-1.34-3-3-3z\" transform=\"translate(1 1)\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\"><strong>Venture Capital<\/strong>, <strong>Growth Equity<\/strong>, and <strong>Leveraged Buyout (&#8216;Private Equity&#8217;)<\/strong> investors all make private investments <strong>in part or all <\/strong>of a <strong>business<\/strong> with the <strong>goal<\/strong> of <strong>selling later for a profit<\/strong>.<\/span><\/li>\n\n\n\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_ba9f72-8e kt-svg-icon-list-style-default\"><span class=\"kb-svg-icon-wrap kb-svg-icon-ic_record kt-svg-icon-list-single\"><svg viewBox=\"0 0 8 8\"  fill=\"currentColor\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><path d=\"M3 0c-1.66 0-3 1.34-3 3s1.34 3 3 3 3-1.34 3-3-1.34-3-3-3z\" transform=\"translate(1 1)\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\"><strong>Venture Capital,<\/strong> <strong>Growth Equity<\/strong>, and <strong>Leveraged<\/strong> <strong>Buyout (&#8216;Private Equity&#8217;) <\/strong>investors <strong>typically charge<\/strong> a <strong>2% annual &#8216;Management Fee&#8217;<\/strong> and a <strong>20% cut<\/strong> of any <strong>profit generated<\/strong> (called &#8216;<strong>Carried Interest<\/strong>&#8216;).<\/span><\/li>\n\n\n\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_6605b6-43 kt-svg-icon-list-style-default\"><span class=\"kb-svg-icon-wrap kb-svg-icon-ic_record kt-svg-icon-list-single\"><svg viewBox=\"0 0 8 8\"  fill=\"currentColor\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><path d=\"M3 0c-1.66 0-3 1.34-3 3s1.34 3 3 3 3-1.34 3-3-1.34-3-3-3z\" transform=\"translate(1 1)\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\"> The <strong>key distinctions <\/strong>between <strong>these three investors <\/strong>are:<\/span><\/li>\n\n\n\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_b01893-59 kt-svg-icon-list-style-stacked\"><span class=\"kb-svg-icon-wrap kb-svg-icon-fe_circle kt-svg-icon-list-single\"><svg viewBox=\"0 0 24 24\"  fill=\"none\" stroke=\"currentColor\" stroke-width=\"1.5\" stroke-linecap=\"round\" stroke-linejoin=\"round\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><circle cx=\"12\" cy=\"12\" r=\"10\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\">(1) <strong>When they invest <\/strong>in a Company\u2019s lifecycle and<\/span><\/li>\n\n\n\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_41d44e-3c kt-svg-icon-list-style-stacked\"><span class=\"kb-svg-icon-wrap kb-svg-icon-fe_circle kt-svg-icon-list-single\"><svg viewBox=\"0 0 24 24\"  fill=\"none\" stroke=\"currentColor\" stroke-width=\"1.5\" stroke-linecap=\"round\" stroke-linejoin=\"round\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><circle cx=\"12\" cy=\"12\" r=\"10\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\">(2) The <strong>type of stake<\/strong> they typically take in a <strong>Company<\/strong><\/span><\/li>\n\n\n\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_a23656-07 kt-svg-icon-list-style-default\"><span class=\"kb-svg-icon-wrap kb-svg-icon-ic_record kt-svg-icon-list-single\"><svg viewBox=\"0 0 8 8\"  fill=\"currentColor\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><path d=\"M3 0c-1.66 0-3 1.34-3 3s1.34 3 3 3 3-1.34 3-3-1.34-3-3-3z\" transform=\"translate(1 1)\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\"><strong>Below <\/strong>is a <strong>high-level summary <\/strong>of <strong>each type<\/strong> of <strong>investment fund<\/strong>:<\/span><\/li>\n\n\n\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_82e574-6b kt-svg-icon-list-style-stacked\"><span class=\"kb-svg-icon-wrap kb-svg-icon-fe_circle kt-svg-icon-list-single\"><svg viewBox=\"0 0 24 24\"  fill=\"none\" stroke=\"currentColor\" stroke-width=\"1.5\" stroke-linecap=\"round\" stroke-linejoin=\"round\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><circle cx=\"12\" cy=\"12\" r=\"10\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\"><strong>Venture Capital:<\/strong> (Early-Stage | Minority Stake)<\/span><\/li>\n\n\n\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_429eab-ff kt-svg-icon-list-style-stacked\"><span class=\"kb-svg-icon-wrap kb-svg-icon-fe_circle kt-svg-icon-list-single\"><svg viewBox=\"0 0 24 24\"  fill=\"none\" stroke=\"currentColor\" stroke-width=\"1.5\" stroke-linecap=\"round\" stroke-linejoin=\"round\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><circle cx=\"12\" cy=\"12\" r=\"10\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\"><strong>Growth Equity:<\/strong> (Mid-Stage | Minority &amp; Majority Stakes)<\/span><\/li>\n\n\n\n<li class=\"wp-block-kadence-listitem kt-svg-icon-list-item-wrap kt-svg-icon-list-item-37622_bb8e24-d5 kt-svg-icon-list-style-stacked\"><span class=\"kb-svg-icon-wrap kb-svg-icon-fe_circle kt-svg-icon-list-single\"><svg viewBox=\"0 0 24 24\"  fill=\"none\" stroke=\"currentColor\" stroke-width=\"1.5\" stroke-linecap=\"round\" stroke-linejoin=\"round\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"  aria-hidden=\"true\"><circle cx=\"12\" cy=\"12\" r=\"10\"\/><\/svg><\/span><span class=\"kt-svg-icon-list-text\"><strong>Leveraged Buyout<\/strong>: (Late-Stage | Majority Stake)<\/span><\/li>\n<\/ul><\/div>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:65px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns containerwidth is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\"><div class=\"kb-row-layout-wrap kb-row-layout-id37622_46d4b9-31 alignnone wp-block-kadence-rowlayout\"><div class=\"kt-row-column-wrap kt-has-1-columns kt-row-layout-equal kt-tab-layout-inherit kt-mobile-layout-row kt-row-valign-top\">\n\n<div class=\"wp-block-kadence-column kadence-column37622_d1e1c4-4f\"><div class=\"kt-inside-inner-col\">\n<h2 class=\"wp-block-heading\" id=\"h-want-to-learn-more-about-finance\" style=\"font-size:35px\"><strong>Want To Learn More About Finance?<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18px\"><strong>Check out all of our (free) deep-dive articles in our<\/strong> <a href=\"https:\/\/finance-able.com\/analyst-starter-kit\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Analyst Starter Kit<\/span><\/strong><\/a>:<\/p>\n\n\n<div class=\" wp-block-kadence-portfoliogrid kb-blocks-portfolio-loop-block alignnone kb-portfolio-loop37622_ff7f64-5f kb-portfolio-grid-layout-carousel kt-blocks-carousel \"><div class=\" kb-portfolio-grid-layout-carousel-wrap kt-post-grid-layout-carousel-wrap kt-carousel-arrowstyle-whiteondark kt-carousel-dotstyle-dark splide kb-blocks-portfolio-img-hover-zoomout kb-blocks-portfolio-content-hover-zoomin\" data-columns-xxl=\"3\" data-columns-xl=\"3\" data-columns-md=\"3\" data-columns-sm=\"2\" data-columns-xs=\"1\" data-columns-ss=\"1\" data-slider-center-mode=\"false\" data-slider-type=\"carousel\" data-slider-anim-speed=\"400\" data-slider-scroll=\"1\" data-slider-dots=\"true\" data-slider-arrows=\"true\" data-slider-hover-pause=\"false\" data-slider-auto=\"true\" data-slider-center-mode=\"false\" data-slider-speed=\"7000\" data-show-pause-button=\"false\" data-slider-gap=\"30\" data-slider-gap-tablet=\"30\" data-slider-gap-mobile=\"30\" data-slider-gap-unit=\"px\" data-item-selector=\".kb-portfolio-masonry-item\"><div class=\"kadence-splide-slider-init splide__track\"><ul><li class=\"kb-portfolio-slider-item kb-slide-item\"><div class=\"kb-blocks-portfolio-grid-item\"><div class=\"kb-blocks-portfolio-grid-item-inner-wrap kb-feat-image-align-none\"><div class=\"kadence-portfolio-image\"><div class=\"kadence-portfolio-image-intrisic kt-image-ratio-nocrop\" style=\"padding-bottom:56.25%\"><div class=\"kadence-portfolio-image-inner-intrisic\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-1024x576.png\" class=\"attachment-large size-large wp-post-image\" alt=\"An image of a lightbulb with the text Unlevered Beta Formula\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/div><\/div><\/div><div class=\"kb-portfolio-grid-item-inner\"><a href=\"https:\/\/finance-able.com\/unlevered-beta-formula\/\" aria-label=\"Unlevered Beta Formula &#8211; Ultimate Guide\" class=\"portfolio-hover-item-link\"><\/a><div class=\"kb-portfolio-overlay-color\"><\/div><div class=\"kb-portfolio-overlay-border\"><\/div><div class=\"kb-portfolio-content-item-inner\"><h3 class=\"entry-title kb-portfolio-loop-title\">Unlevered Beta Formula &#8211; Ultimate Guide<\/h3><\/div><\/div><\/div><\/div><\/li><li class=\"kb-portfolio-slider-item kb-slide-item\"><div class=\"kb-blocks-portfolio-grid-item\"><div class=\"kb-blocks-portfolio-grid-item-inner-wrap kb-feat-image-align-none\"><div class=\"kadence-portfolio-image\"><div class=\"kadence-portfolio-image-intrisic kt-image-ratio-nocrop\" style=\"padding-bottom:56.25%\"><div class=\"kadence-portfolio-image-inner-intrisic\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-1024x576.png\" class=\"attachment-large size-large wp-post-image\" alt=\"A lightbulb and the words Purchase Price Allocation\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/div><\/div><\/div><div class=\"kb-portfolio-grid-item-inner\"><a href=\"https:\/\/finance-able.com\/purchase-price-allocation\/\" aria-label=\"Purchase Price Allocation in 4 Steps &#8211; The Ultimate Guide\" class=\"portfolio-hover-item-link\"><\/a><div class=\"kb-portfolio-overlay-color\"><\/div><div class=\"kb-portfolio-overlay-border\"><\/div><div class=\"kb-portfolio-content-item-inner\"><h3 class=\"entry-title kb-portfolio-loop-title\">Purchase Price Allocation in 4 Steps &#8211; The Ultimate Guide<\/h3><\/div><\/div><\/div><\/div><\/li><li class=\"kb-portfolio-slider-item kb-slide-item\"><div class=\"kb-blocks-portfolio-grid-item\"><div class=\"kb-blocks-portfolio-grid-item-inner-wrap kb-feat-image-align-none\"><div class=\"kadence-portfolio-image\"><div class=\"kadence-portfolio-image-intrisic kt-image-ratio-nocrop\" style=\"padding-bottom:45.138888888889%\"><div class=\"kadence-portfolio-image-inner-intrisic\"><img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"325\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1.png\" class=\"attachment-large size-large wp-post-image\" alt=\": A stick figure answering an interview question with the title text &#039;Walk Me Through an LBO&#039; below\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1.png 720w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-300x135.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-400x181.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-624x282.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-50x23.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-100x45.png 100w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/div><\/div><\/div><div class=\"kb-portfolio-grid-item-inner\"><a href=\"https:\/\/finance-able.com\/walk-me-through-a-dcf\/\" aria-label=\"Walk Me Through a DCF in 5 Steps &#8211; The Ultimate Guide\" class=\"portfolio-hover-item-link\"><\/a><div class=\"kb-portfolio-overlay-color\"><\/div><div class=\"kb-portfolio-overlay-border\"><\/div><div class=\"kb-portfolio-content-item-inner\"><h3 class=\"entry-title kb-portfolio-loop-title\">Walk Me Through a DCF in 5 Steps &#8211; The Ultimate Guide<\/h3><\/div><\/div><\/div><\/div><\/li><\/ul><\/div><div class=\"clearfix\" style=\"clear:both\"><\/div><\/div><\/div><\/div><\/div>\n\n<\/div><\/div><\/div>\n<\/div>\n\n\n\n<div style=\"height:70px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns containerwidth is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\"><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-intro-private-equity-vs-venture-capital\" style=\"font-size:37px\"><strong>Intro: Private Equity vs Venture Capital<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/1-Researching-At-Desk.png\" alt=\"Stick figure trying to understand Private Equity vs Venture Capital and how Growth Equity fits in.\" class=\"wp-image-37625\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/1-Researching-At-Desk.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/1-Researching-At-Desk-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/1-Researching-At-Desk-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/1-Researching-At-Desk-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/1-Researching-At-Desk-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/1-Researching-At-Desk-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/1-Researching-At-Desk-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/1-Researching-At-Desk-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n\n\n\n<p style=\"font-size:18.5px\">The inner workings of <strong>Venture Capital<\/strong>, <strong>Growth Equity<\/strong>, and <strong>Leveraged Buyout (<strong>&#8216;LBO&#8217;<\/strong><\/strong> or <strong>&#8216;Private Equity&#8217;)<\/strong> firms can seem like a <strong>black box <\/strong>to <strong>outsiders<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">And, <strong>often, speaking with someone who works <\/strong>at <strong>one of these firms <\/strong>to gain clarity <strong>causes further confusion<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>This is because <\/strong>there is <strong>so much presumed knowledge<\/strong> (and so many interchangeable terms).<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>In this article<\/strong>, we&#8217;ll <strong>clear up <\/strong>the <strong>differences <\/strong>between <strong>Private Equity vs Venture Capital<\/strong>. We&#8217;ll <strong>also explain <\/strong>how <strong>Growth Equity <\/strong>fits in as well.  <\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-big-picture-private-equity-vs-venture-capital\" style=\"font-size:37px\"><strong>Big Picture: Private Equity vs Venture Capital <\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\"><strong>In this article<\/strong>, we&#8217;ll <strong>dive into each type of firm <\/strong>to shed light on <strong>exactly how they operate<\/strong>.<br><br><strong>In terms of <\/strong>their <strong>structure <\/strong>and <strong>objectives<\/strong>, <strong>these firms <\/strong>are <strong>more similar than <\/strong>they are <strong>different<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/2-Types-of-Firms-Intro.png\" alt=\"The different stages and investment for Venture Capital, Growth Equity, and Private Equity funds\" class=\"wp-image-37633\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/2-Types-of-Firms-Intro.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/2-Types-of-Firms-Intro-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/2-Types-of-Firms-Intro-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/2-Types-of-Firms-Intro-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/2-Types-of-Firms-Intro-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/2-Types-of-Firms-Intro-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/2-Types-of-Firms-Intro-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/2-Types-of-Firms-Intro-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n\n\n\n<p style=\"font-size:18.5px\">They <strong>all take in money <\/strong>from <strong>investors <\/strong>and then <strong>buy partial ownership stakes <\/strong>in a <strong>business <\/strong>(<strong>&#8216;Minority&#8217;<\/strong> stakes) or, <strong>sometimes<\/strong>, the <strong>entire business <\/strong>(<strong>&#8216;Majority&#8217;<\/strong> or <strong>&#8216;Controlling&#8217;<\/strong> stakes). <\/p>\n\n\n\n<p style=\"font-size:18.5px\">The <strong>end goal <\/strong>is to <strong>sell their stakes <\/strong>in the future <strong>to generate a return <\/strong>for their <strong>investors<\/strong>.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\" id=\"h-how-private-equity-funds-operate\" style=\"font-size:28px\"><strong>How Private Equity Funds Operate<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-video\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted poster=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Screenshot-2023-08-03-at-1.22.27-PM.png\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/how-private-equity-funds-operate.mp4\" playsinline><\/video><\/figure>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-typical-private-equity-fee-structures\" style=\"font-size:37px\"><strong>Typical Private Equity Fee Structures<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\"><strong>In return for investing <\/strong>their money, the fund&#8217;s <strong>investors pay <\/strong>these <strong>firms two types of fees<\/strong>:<br><strong>\u2022 Management Fees:<\/strong> An <span style=\"text-decoration: underline;\"><strong>annual fee<\/strong><\/span> that <strong>typically represents 2.0%<\/strong> of the <strong>total dollars invested<\/strong>.<br>\u2022 <strong>Carried Interest:<\/strong> The <strong>investment firm\u2019s share <\/strong>of the <strong>profits generated <\/strong>(<strong>typically 15-20%<\/strong> of the profit).<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\" id=\"h-two-fees-management-fees-and-carried-interest\" style=\"font-size:28px\"><strong>Two Fees: Management Fees and Carried Interest<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-video\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/private-equity-management-fees-and-carried-interest.mp4\" playsinline><\/video><\/figure>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-private-equity-vs-venture-capital-stages-of-growth\" style=\"font-size:37px\"><strong>Private Equity vs Venture Capital: \u2018Stages\u2019 of Growth<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\">The <strong>key distinction <\/strong>between these firms <strong>is the Stage<\/strong> in a <strong>company\u2019s lifecycle where each firm participates<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/3-The-Stages.png\" alt=\"A graph showing the progression of early-stage, mid-stage and late-stage businesses\" class=\"wp-image-37639\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/3-The-Stages.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/3-The-Stages-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/3-The-Stages-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/3-The-Stages-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/3-The-Stages-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/3-The-Stages-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/3-The-Stages-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/3-The-Stages-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n\n\n\n<p style=\"font-size:18.5px\">Broadly speaking, there are <strong>three stages<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Early-Stage: <\/strong>A <strong>young start-up business <\/strong>with an <strong>innovative new idea <\/strong>but with <strong>little or no Revenue<\/strong>.<\/li>\n\n\n\n<li><strong>Mid-Stage: <\/strong>A <strong>business <\/strong>that has <strong>proven the viability <\/strong>of the <strong>founder&#8217;s initial idea<\/strong>. A <strong>Mid-stage business <\/strong>is <strong>working <\/strong>to <strong>grow as rapidly as possible <\/strong>to generate revenue (and ultimately profit!).<\/li>\n\n\n\n<li><strong>Late-Stage:<\/strong> A <strong>business that is no longer growing rapidly<\/strong>. They are <strong>typically at <\/strong>(or are approaching) <strong>growth rates <\/strong>in line with the <strong>overall economy <\/strong>(or 2-4% per year).<\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-private-equity-vs-venture-capital-where-each-firm-invests\" style=\"font-size:37px\"><strong>Private Equity vs Venture Capital &#8211; Where Each Firm Invests<\/strong><\/h2>\n\n\n<!-- This site is converting visitors into subscribers and customers with OptinMonster - https:\/\/optinmonster.com :: Campaign Title: Private Equity vs Venture Capital - Obfuscation -->\n<div id=\"om-fimi8ukj5vyfrwu2tkmn-holder\"><\/div>\n<script>(function(d,u,ac){var s=d.createElement('script');s.type='text\/javascript';s.src='https:\/\/a.omappapi.com\/app\/js\/api.min.js';s.async=true;s.dataset.user=u;s.dataset.campaign=ac;d.getElementsByTagName('head')[0].appendChild(s);})(document,130718,'fimi8ukj5vyfrwu2tkmn');<\/script>\n<!-- \/ OptinMonster -->\n\n\n\n<p style=\"font-size:18.5px\"><strong>Private investment firms<\/strong> are <strong>broadly aligned <\/strong>around <strong>the stages listed above<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Venture Capital<\/strong>, <strong>Growth Equity,<\/strong> and <strong>Leveraged Buyout (&#8216;Private Equity&#8217;)<\/strong> funds typically invest in <strong>Early-Stage<\/strong>, <strong>Mid-Stage<\/strong>, and <strong>Late-Stage<\/strong> businesses, respectively.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">It is important to note, however, that the dividing lines are <strong><span style=\"text-decoration: underline;\">VERY<\/span><\/strong> blurry between these investors!<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\" id=\"h-venture-capital-vs-growth-equity-vs-private-equity\" style=\"font-size:28px\"><strong>Venture Capital vs Growth Equity vs Private Equity<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-video\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/venture-capital-vs-private-equity-stages-of-growth.mp4\" playsinline><\/video><\/figure>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-private-equity-what-s-in-a-name\" style=\"font-size:37px\"><strong>&#8216;Private Equity&#8217;: What\u2019s in a Name?<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Just to keep things interesting<\/strong>, <strong>we need <\/strong>to create (and then explain) <strong>an interchangeable term <\/strong>here.<br><br>The <strong>proper name <\/strong>for these firms is not <strong>Private Investment<\/strong> firms, but rather <strong>Private Equity<\/strong> (or <strong>&#8216;PE&#8217;<\/strong> for short). <\/p>\n\n\n\n<p style=\"font-size:18.5px\">This is because <strong>these firms <\/strong>use <strong>investor money <\/strong>(or &#8216;<strong>Equity<\/strong>&#8216;) to <strong>invest in businesses <\/strong>that are <strong>not <a href=\"https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/how-stock-markets-work\/public-companies\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">publicly traded<\/span><\/a><\/strong>.<br><br>Technically speaking, <strong>Venture Capital<\/strong>, <strong>Growth Equity<\/strong>, and <strong>Private Equity<\/strong> firms are <strong>&#8216;Private Equity&#8217;<\/strong> investors. <\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\" id=\"h-private-equity-leveraged-buyout-lbo\" style=\"font-size:28px\"><strong>Private Equity = Leveraged Buyout (LBO)<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-video\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/private-equity-is-synonymous-with-leveraged-buyout-or-lbo.mp4\" playsinline><\/video><\/figure>\n\n\n\n<p style=\"font-size:18.5px\">But, somewhere along the way, the <strong>Late-Stage<\/strong> (<strong>Leveraged Buyout<\/strong>) investors grabbed the name <strong>&#8216;Private Equity&#8217;<\/strong> and have yet to give it back. <br><br>So, when people in the industry refer to <strong>&#8216;Private Equity<\/strong>&#8216; or <strong>&#8216;PE&#8217;<\/strong>, they assume the term refers to <strong>Leveraged Buyout<\/strong> firms rather than <strong>Venture Capital<\/strong> or <strong>Growth Equity<\/strong>.<br><br>With that point clarified, <strong>let&#8217;s take <\/strong>a <strong>deeper look <\/strong>at how <strong>each type of firm operates<\/strong>.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-venture-capital-the-seeds-of-economic-growth\" style=\"font-size:37px\"><strong>Venture Capital: The Seeds of Economic Growth<\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-video\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/venture-capitalist-providing-funding-to-business-founder.mp4\" playsinline><\/video><\/figure>\n\n\n\n<p style=\"font-size:18.5px\"><strong>If you love to say you knew the band before it was big, Venture Capital is probably for you.<\/strong><br><br><strong>Venture Capitalists<\/strong> (&#8216;<strong>VC&#8217; <\/strong>firms) provide <strong>funding to founders <\/strong>of <strong>young businesses <\/strong>who often present <strong>ideas written <\/strong>down <strong>on the back of a paper napkin<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Venture Capital<\/strong> firms <strong>provide money to <\/strong>these <strong>companies<\/strong>. The <strong>money allows <\/strong>the founder to <strong>hire a team <\/strong>to <strong>test <\/strong>(and hopefully to prove out!) <strong>the founder&#8217;s business idea<\/strong>.<br><br>The <strong>goal <\/strong>is for <strong>this idea <\/strong>to <strong>ultimately become <\/strong>a <strong>major business <\/strong>like <strong>Google<\/strong>, <strong>Amazon<\/strong>, or <strong>Facebook<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">In return for their <strong>investment<\/strong>, the <strong>Venture Capital<\/strong> firm receives an <strong>ownership stake <\/strong>in the business. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Venture Capital Investments <\/strong>are <strong>often expressed <\/strong>in terms of <strong>Rounds<\/strong> or <strong>Series<\/strong>.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-early-stage-venture-capital-a-series-of-rounds\" style=\"font-size:28px\"><strong>Early-Stage Venture Capital: A &#8216;Series&#8217; of &#8216;Rounds&#8217;<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Many founders <\/strong>initially <strong>raise money <\/strong>from their <strong>personal networks <\/strong>(<strong>Friends and Family Round<\/strong>) or from wealthy individuals (<strong>Angel Investors<\/strong>). <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>If they need a larger investment<\/strong>, they will turn to <strong>Venture Capital <\/strong>funds. <\/p>\n\n\n\n<figure class=\"wp-block-video\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Seed-round-funding-is-at-a-very-early-stage.mp4\" playsinline><\/video><\/figure>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Funding <\/strong>raised <strong>before VC funding <\/strong>is typically <strong>referred to <\/strong>as the <strong>Pre-Seed Round <\/strong>or the <strong>Pre-Seed Stage<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">The <strong>first major investment<\/strong> by a <strong>Venture Capital Fund<\/strong> is referred to as a <strong>Seed Investment<\/strong> or <strong>Seed Round<\/strong>.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-series-a-funding-and-beyond\" style=\"font-size:28px\"><strong>Series A Funding and Beyond<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\"><br>After the <strong>Seed Round<\/strong>, <strong>if <\/strong>the <strong>founder <\/strong>and the team are <strong>successful <\/strong>in <strong>gaining traction <\/strong>with customers, they will <strong>typically raise more capital <\/strong>in the form of a <strong>Series A Round<\/strong>. <\/p>\n\n\n\n<figure class=\"wp-block-video\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/Series-A-Round-occurs-after-seed-round.mp4\" playsinline><\/video><\/figure>\n\n\n\n<p style=\"font-size:18.5px\">This investment is typically <strong><span style=\"text-decoration: underline;\">MUCH<\/span><\/strong> larger than the <strong>Seed Investment<\/strong>.<br><br>After the <strong>Series A Round <\/strong>of funding, future fundraises are called <a href=\"https:\/\/www.investopedia.com\/articles\/personal-finance\/102015\/series-b-c-funding-what-it-all-means-and-how-it-works.asp\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Series B, C, D<\/span><\/strong>,<\/a> etc. The time at which a company raises these <strong>Rounds<\/strong> of capital varies, as does the dollar amount raised.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><em><strong>Want to dig deeper <\/strong>into the <strong>typical sizes <\/strong>of <strong>Series A, B, C, D, etc.<\/strong> rounds? Check out this <a href=\"https:\/\/www.fundz.net\/what-is-series-a-funding-series-b-funding-and-more\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">article<\/span><\/strong><\/a>. <\/em><\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-venture-capital-endgame-returns-for-investors\" style=\"font-size:28px\"><strong>The Venture Capital Endgame&#8230;Returns for Investors<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Venture Capital (VC) <\/strong>funds <strong>invest knowing <\/strong>that <strong>many <\/strong>of their <strong>investments will fail<\/strong>. However, the <strong>few that succeed <\/strong>will <strong>generate 10-100x+ returns<\/strong> on the initial money invested. <br><br><strong>To generate <\/strong>these <strong>returns for Investors,<\/strong> the <strong>VC Fund<\/strong> <strong>has two options<\/strong>:<\/p>\n\n\n\n<div class=\"wp-block-advgb-list\"><ul class=\"advgblist-4c91ed81-2172-4688-a561-02950c3bd082\">\n<li>(1) The <strong>VC fund can sell <\/strong>the <strong>Companies <\/strong>they invested in <strong>to larger companies<\/strong>.<\/li>\n\n\n\n<li>(2) Or the <strong>VC fund <\/strong>can <a href=\"https:\/\/www.forbes.com\/advisor\/investing\/initial-public-offering-what-is-an-ipo\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">list the company&#8217;s shares on the Stock Exchange<\/span><\/strong><\/a>. <strong>After <\/strong>the <strong>shares <\/strong>become <strong>Publicly Traded<\/strong>, the <strong>VC Fund <\/strong>can <strong>sell its stake<\/strong>.<\/li>\n<\/ul><\/div>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Regardless of <\/strong>which <strong>path <\/strong>they take, the <strong>VC fund must return <\/strong>money <strong>above the original investment <\/strong>to its investors <strong>to generate Carried Interest (their 20% share of the profit).<\/strong><\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-growth-equity-onward-and-upward\" style=\"font-size:37px\"><strong>Growth Equity: Onward and Upward!<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-video\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/growth-equity-investors-providing-funding-to-business-founder.mp4\" playsinline><\/video><\/figure>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Once <\/strong>a <strong>business gains further traction <\/strong>with <strong>paying customers <\/strong>and <strong>attractive economics<\/strong>, <strong>Growth Equity<\/strong> investors <strong>step in<\/strong>.<br><br><strong>At this stage<\/strong>, the <strong>company needs money<\/strong> to help it <strong>grow rapidly <\/strong>(or <strong>&#8216;Scale&#8217;<\/strong> in Finance-speak). <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Growth Equity <\/strong>investors <strong>provide <\/strong>the <strong>critical funding <\/strong>need <strong>to drive growth<\/strong>. <strong>Typical areas <\/strong>of <strong>investment <\/strong>are <strong>Marketing<\/strong>, the <strong>Executive team<\/strong>, <strong>Overhead support<\/strong>, <strong>Research &amp; Development <\/strong>(R&amp;D), and the <strong>Sales team<\/strong>.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-venture-capital-vs-growth-equity-series-investment-names\" style=\"font-size:28px\"><strong>Venture Capital vs Growth Equity &#8211;  Series Investment Names<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\">If a <strong>Growth Equity<\/strong> investor makes a non-controlling (<strong>&#8216;Minority&#8217;<\/strong>) investment in a business, it is typically called a &#8216;<strong>Series<\/strong>&#8216; investment similar to what we saw with <strong>Venture Capital<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">While there is <strong>not a hard and fast rule<\/strong>, companies raising <strong>Series C<\/strong> investments and beyond would <strong>typically <\/strong>be <strong>considered <\/strong>&#8216;<strong>Growth Equity<\/strong>.&#8217; <\/p>\n\n\n\n<figure class=\"wp-block-video\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Series-C-and-beyond-are-typically-growth-equity.mp4\" playsinline><\/video><\/figure>\n\n\n\n<p style=\"font-size:18.5px\">As illustrated in our <a href=\"https:\/\/youtu.be\/7ZN2XJPwN-Q\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Explainer Video<\/span><\/strong><\/a>, there <strong>isn&#8217;t a hard and fast rule <\/strong>as to where <strong>Venture Capital<\/strong> ends and <strong>Growth Equity<\/strong> begins.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-growth-equity-vs-private-equity-minority-vs-majority-stakes\" style=\"font-size:28px\"><strong>Growth Equity vs Private Equity &#8211; Minority vs Majority Stakes<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\"><br>Similarly, there is <strong>not a clear dividing line <\/strong>between <strong>Growth Equity<\/strong> and <strong>Leveraged Buyout<\/strong> (<strong>&#8216;Private Equity&#8217;<\/strong>). <br><br>In fact, <strong>many Growth Equity firms <\/strong>will buy the <strong>entire business outright <\/strong>(called a &#8216;<strong>Majority<\/strong>&#8216; or &#8216;<strong>Controlling<\/strong>&#8216; stake).  <\/p>\n\n\n\n<p style=\"font-size:18.5px\">Conversely, <strong>many traditional Private Equity<\/strong> <strong>firms <\/strong>make <strong>Minority investments<\/strong>. <\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-growth-equity-vs-private-equity-level-of-debt-used\" style=\"font-size:28px\"><strong>Growth Equity vs Private Equity: Level of Debt Used<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\">The <strong>big difference <\/strong>between <strong>Growth Equity<\/strong> and <strong>Leveraged Buyout<\/strong> investments is the <strong>level of Debt <\/strong>each uses. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">Because <strong>Growth Equity-funded<\/strong> companies are <strong>typically less stable<\/strong>, they <strong>cannot support <\/strong>as much <strong>debt<\/strong>. <\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-growth-equity-wrap-up\" style=\"font-size:28px\"><strong>Growth Equity Wrap-Up<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\">Whether a <strong>Growth Equity<\/strong> fund is <strong>buying all <\/strong>or <strong>part <\/strong>of a <strong>business<\/strong>, the <strong>end goal <\/strong>is the <strong>same<\/strong> as with <strong>VC funds<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Growth Equity investors aim <\/strong>to either <strong>sell the business or <\/strong>to <strong>take it public<\/strong> down the road. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">This <strong>allows <\/strong>the <strong>Growth Equity <\/strong>firm to <strong>sell its stake <\/strong>and <strong>return capital <\/strong>to <strong>investors<\/strong>, which <strong>generates fees <\/strong>for the firm.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-lbo-slower-growth-exciting-returns\" style=\"font-size:37px\"><strong>LBO: Slower Growth&#8230;Exciting Returns!<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/8-LBO.png\" alt=\"Illustration showing a Private Equity Investor and a Lender gathering Debt and Equity funding for LBO.\" class=\"wp-image-37659\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/8-LBO.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/8-LBO-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/8-LBO-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/8-LBO-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/8-LBO-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/8-LBO-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/8-LBO-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/8-LBO-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n\n\n\n<p style=\"font-size:18.5px\"><strong>At some point, every business&#8217; growth rate eventually slows.<\/strong> <strong>Companies <\/strong>with <strong>lower levels <\/strong>of <strong>growth <\/strong>can be a <strong>fine investment<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>However<\/strong>, <strong>low growth <\/strong>makes the <strong>investment <\/strong>a lot <strong>less attractive<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">This is where <strong>Leveraged Buyout<\/strong> funds <strong>step in<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><em>As a <strong>quick reminder<\/strong>, the terms <strong>Private Equity<\/strong>, <strong>Leveraged Buyout<\/strong>, and <strong>LBO <\/strong>are <strong>generally interchangeable<\/strong>. <\/em><\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-why-use-debt\" style=\"font-size:28px\"><strong>Why Use Debt?<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Mature businesses <\/strong>are typically much <strong>more stable<\/strong>. As a result, they <strong>can support <\/strong>much <strong>higher levels <\/strong>of <strong>debt <\/strong>compared to <strong>Venture <\/strong>and <strong>Growth Equity-funded companies<\/strong>.<br><br>To <strong>enhance <\/strong>the <strong>return <\/strong>of <strong>lower-growth businesses<\/strong>, <a href=\"https:\/\/finance-able.com\/walk-me-through-an-lbo\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Leveraged Buyout<\/span><\/strong><\/a> (&#8216;<strong>LBO<\/strong>&#8216;) funds <strong>borrow <\/strong>a <strong>meaningful portion <\/strong>(typically 50% or more) of the <strong>Purchase Price<\/strong> (or <strong>Enterprise Value<\/strong>).<\/p>\n\n\n\n<p style=\"font-size:18.5px\">They <strong>fund <\/strong>the <strong>remaining portion <\/strong>of the <strong>purchase <\/strong>with <strong>money from <\/strong>their <strong>investors <\/strong>(<strong>&#8216;Equity&#8217;<\/strong>).<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Using Debt <\/strong>to <strong>fund part <\/strong>of the <strong>purchase lowers <\/strong>the <strong>amount of investor money required <\/strong>which <strong>enhances returns<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-video\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/private-equity-deals-are-funded-with-debt-and-equity.mp4\" playsinline><\/video><\/figure>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-a-house-purchase-is-basically-an-lbo\" style=\"font-size:28px\"><strong>A House Purchase is Basically an LBO<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\"><strong>If you <\/strong>have ever <strong>purchased a house<\/strong>, you have done a <strong>Leveraged Buyout<\/strong>\u2026but <strong>you <\/strong>simply <strong>bought a house<\/strong>&#8230;which is <strong>really a business in disguise<\/strong>! <\/p>\n\n\n\n<p><em>For more on how a house is a &#8216;business,&#8217; check out this <a href=\"https:\/\/finance-able.com\/learn-finance-foundational-framework\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">article<\/span><\/strong><\/a>.  <\/em><\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Let&#8217;s now walk through <\/strong>the <strong>four steps <\/strong>of the <strong>LBO process<\/strong>:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LBO-in-4-Steps-1024x576.png\" alt=\"The four core steps in an LBO or House Purchase\" class=\"wp-image-41833\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LBO-in-4-Steps-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LBO-in-4-Steps-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LBO-in-4-Steps-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LBO-in-4-Steps-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LBO-in-4-Steps-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LBO-in-4-Steps-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LBO-in-4-Steps-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LBO-in-4-Steps.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-step-1-buy-the-business-or-house-with-debt-or-equity\" style=\"font-size:24px\"><strong>Step 1: Buy the Business (or House) with Debt or Equity<\/strong><\/h4>\n\n\n\n<p style=\"font-size:18.5px\">We <strong>begin an LBO transaction <\/strong>by <strong>buying <\/strong>a <strong>business <\/strong>with a <strong>combination <\/strong>of <strong>Debt <\/strong>and <strong>Equity<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><em>This is the same as buying a house with a Mortgage and contributing a Down Payment to fund the remainder. <\/em><\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-step-2-pay-down-debt\" style=\"font-size:24px\"><strong>Step 2: Pay Down Debt<\/strong><\/h4>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Leveraged Buyout <\/strong>funds <strong>make money <\/strong>by <strong>paying down the debt <\/strong>they owe <strong>using the Cash Flow<\/strong> of the Business. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><em>This is just like paying down your mortgage with your personal income. <\/em><\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-step-3-make-improvements-to-increase-resale-value\" style=\"font-size:24px\"><strong>Step 3: Make Improvements to Increase Resale Value<\/strong><\/h4>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Leveraged Buyout funds <\/strong>can <strong>also make money <\/strong>by <strong>making improvements <\/strong>to the <strong>business <\/strong>to drive <strong>improved growth <\/strong>and <strong>profitability<\/strong>.  <\/p>\n\n\n\n<p style=\"font-size:18.5px\">This <strong>will allow <\/strong>the <strong>Leveraged Buyout <\/strong>firm to <strong>sell <\/strong>at a <strong>higher price<\/strong> down the road. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><em>This just like remodeling your house to sell at a higher value.<\/em><\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-step-4-sell-to-a-new-owner-and-collect-proceeds-after-debt\" style=\"font-size:24px\"><strong>Step 4: Sell to a New Owner and Collect Proceeds (after Debt)<\/strong><\/h4>\n\n\n\n<p style=\"font-size:18.5px\"><strong>After some time <\/strong>(<strong>typically 3-5 years<\/strong>), the <strong>Leveraged Buyout<\/strong> firm will <strong>sell the business<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Selling <\/strong>the business and <strong>collecting the proceeds <\/strong>is <strong>how Leveraged Buyout firms generate returns <\/strong>for their <strong>Investors<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Similar to <\/strong>the process of <strong>selling a house<\/strong>, the <strong>Leveraged Buyout<\/strong> fund <strong>sells the company<\/strong>, <strong>pays <\/strong>back the <strong>outstanding debt, <\/strong>and <strong>collects <\/strong>any <strong>excess proceeds <\/strong>and <strong>any cash <\/strong>on the <strong>company&#8217;s Balance Sheet<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">The <strong>Leveraged Buyout <\/strong>firm then <strong>collects <\/strong>the <strong>remaining cash, <\/strong>which they <strong>return <\/strong>to the <strong>fund\u2019s investors<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><em>This is the same as how you would repay a mortgage when you sell your house. <\/em><\/p>\n\n\n\n<p><\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-leverage-buyouts-public-vs-private-acquisition-targets\" style=\"font-size:28px\"><strong>Leverage Buyouts: Public vs Private Acquisition Targets<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Leveraged Buyout (&#8216;Private Equity&#8217;) <\/strong>funds offer <strong>Publicly Traded<\/strong> or <strong>Privately Held<\/strong> mature businesses the ability to sell (or <strong>&#8216;Liquidity&#8217;<\/strong>). <\/p>\n\n\n\n<p style=\"font-size:18.5px\">For <strong>Public Companies<\/strong>, selling to <strong>Leveraged Buyout<\/strong> firms can be doubly attractive as the company is no longer beholden to quarterly scrutiny by <strong>Public Market<\/strong> investors.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-private-equity-wrap-up\" style=\"font-size:28px\"><strong>Private Equity Wrap-Up<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\"><strong>As with Venture Capital <\/strong>and <strong>Growth Equity <\/strong>investment firms, the <strong>end goal <\/strong>for Private Equity firms is to either <strong>sell the business or <\/strong>to <strong>take it public<\/strong> down the road. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">This <strong>allows <\/strong>the <strong>Private Equity<\/strong> firm to <strong>sell its stake <\/strong>and <strong>return capital <\/strong>to <strong>investors<\/strong>, which <strong>generates fees <\/strong>for the firm.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-recap-private-equity-vs-venture-capital\" style=\"font-size:37px\"><strong>Recap: Private Equity vs Venture Capital<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\"><strong>We hope <\/strong>that <strong>after reading this<\/strong>, you now have a <strong>much clearer understanding <\/strong>of how <strong>Venture Capital<\/strong>, <strong>Growth Equity<\/strong>, and <strong>Leveraged Buyout<\/strong> (<strong>&#8216;Private Equity&#8217;<\/strong>) investors operate.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/9-Types-of-Firms-Outro.png\" alt=\"Venture Capital, Growth Equity, and Leveraged Buyout (Private Equity) investors stages and types of investments\" class=\"wp-image-37660\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/9-Types-of-Firms-Outro.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/9-Types-of-Firms-Outro-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/9-Types-of-Firms-Outro-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/9-Types-of-Firms-Outro-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/9-Types-of-Firms-Outro-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/9-Types-of-Firms-Outro-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/9-Types-of-Firms-Outro-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/9-Types-of-Firms-Outro-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n\n\n\n<p style=\"font-size:18.5px\">In the end, <strong>each of these firms <\/strong>plays a <strong>meaningful role <\/strong>in <strong>fueling the growth <\/strong>of <strong>companies across their lifecycles<\/strong>.<br><br>The <strong>key <\/strong>is <strong>to understand <\/strong>at <strong>what Stage <\/strong>they typically invest (<strong>Early<\/strong> vs <strong>Mid <\/strong>vs <strong>Late<\/strong>) and the <strong>type of stake <\/strong>they take (<strong>Minority <\/strong>or <strong>Majority\/Controlling<\/strong>).<br><br>It is <strong>also critical <\/strong>to <strong>understand <\/strong>that <strong>all the firms <\/strong>discussed here are <strong><em>technically <\/em><\/strong>&#8216;<strong>Private Equity<\/strong>.&#8217;<\/p>\n\n\n\n<p style=\"font-size:18.5px\">However, <strong>people in the Finance <\/strong>industry generally <strong>refer to Leveraged Buyout<\/strong> firms as <strong>Private Equity<\/strong> firms.<br><br><strong>If you have any comments or questions, please let us know below!<\/strong><\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-private-equity-vs-venture-capital-animated-explainer-video\" style=\"font-size:37px\"><strong>Private Equity vs Venture Capital: Animated Explainer Video<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\"><strong>If you enjoyed this article<\/strong>, check out our <span style=\"text-decoration: underline;\"><a href=\"https:\/\/youtu.be\/7ZN2XJPwN-Q\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>Animated Explainer Video<\/strong><\/span><\/a><\/span> on the differences between <strong>Private Equity vs Venture Capital<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">You can find more videos just like this on our <a href=\"https:\/\/www.youtube.com\/c\/FinanceableTraining\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">YouTube Channel<\/span><\/strong><\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-related-links\" style=\"font-size:37px\"><strong>Related Links<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-yoast-seo-related-links yoast-seo-related-links\">\n<li><a href=\"https:\/\/finance-able.com\/walk-me-through-a-dcf\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Walk Me Through a DCF in 5 Steps &#8211; The Ultimate Guide (2021)<\/span><\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/finance-able.com\/hedge-fund-vs-mutual-fund\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Hedge Funds vs Mutual Funds Made Easy \u2013 Definitive Guide (2021)<\/span><\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/finance-able.com\/walk-me-through-an-lbo\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>Walk Me Through an LBO in 6 Steps \u2013 The Ultimate Guide (2021)<\/strong><\/span><\/a><\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"font-size:35px\"><strong>About the Author<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo.jpg\" alt=\"Picture of Mike Kimpel, Founder of Finance|able\" class=\"wp-image-26350\" style=\"width:266px;height:266px\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo.jpg 500w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-300x300.jpg 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-100x100.jpg 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-150x150.jpg 150w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-50x50.jpg 50w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:17px\"><a href=\"https:\/\/finance-able.com\/about\/\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><span style=\"text-decoration: underline;\">Mike Kimpel<\/span><\/mark><\/strong><\/a> is the <strong>Founder and CEO<\/strong> of <strong>Finance|able<\/strong>, a next-generation Finance Career Training platform. Mike has worked in Investment Banking, Private Equity, Hedge Fund, and Mutual Fund roles during his career.<\/p>\n\n\n\n<p style=\"font-size:17px\">He is an <strong>Adjunct Professor<\/strong> in <strong>Columbia Business School&#8217;s <a href=\"https:\/\/www8.gsb.columbia.edu\/valueinvesting\/coursesfaculty\/valueinvestingprogram\" target=\"_blank\" rel=\"noreferrer noopener\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><span style=\"text-decoration: underline;\">Value Investing Program<\/span><\/mark><\/a><\/strong> and leads the Finance track at <a href=\"https:\/\/www.accessdistributed.org\/\" target=\"_blank\" rel=\"noreferrer noopener\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><strong><span style=\"text-decoration: underline;\">Access Distributed<\/span><\/strong><\/mark><\/a>, a non-profit that creates access to top-tier Finance jobs for students at non-target schools from underrepresented backgrounds.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions-faqs\" style=\"font-size:37px\"><strong>Frequently Asked Questions (FAQs)<\/strong><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1626141542853\"><strong class=\"schema-faq-question\"><em>What is Private Equity?<\/em><\/strong> <p class=\"schema-faq-answer\">The term <strong>&#8216;Private Equity&#8217; technically refers <\/strong>to <strong>Venture Capital<\/strong>, <strong>Growth Equity<\/strong>, and <strong>Leveraged Buyout (LBO) funds<\/strong>.  This is because <strong>these firms <\/strong>use <strong>investor money <\/strong>(or &#8216;<strong>Equity<\/strong>&#8216;) to <strong>invest in businesses <\/strong>that are <strong>not <a href=\"https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/how-stock-markets-work\/public-companies\" target=\"_blank\" rel=\"noreferrer noopener\">publicly traded<\/a><\/strong>. However, <strong>when people<\/strong> in the Finance industry <strong>refer to &#8216;Private Equity&#8217;<\/strong> (or &#8216;PE&#8217;), they are <strong>typically talking <\/strong>about <strong>LBO funds<\/strong>. <\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626141558136\"><strong class=\"schema-faq-question\"><em>What is Venture Capital?<\/em><\/strong> <p class=\"schema-faq-answer\"><strong>Venture Capital <\/strong>funds <strong>invest <\/strong>(Seed, Series A, Series B) in <strong>young, early-stage businesses <\/strong>to help the <strong>business <\/strong>prove out a <strong>business idea<\/strong>. <strong>Beyond financial <\/strong>support, they <strong>offer access to <\/strong>their <strong>vast networks <\/strong>of contacts and <strong>sit on <\/strong>the company&#8217;s <strong>Board of Directors <\/strong>to <strong>provide guidance<\/strong>. <\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626141755768\"><strong class=\"schema-faq-question\"><em>What is Growth Equity?<\/em><\/strong> <p class=\"schema-faq-answer\"><strong>Growth Equity <\/strong>funds <strong>invest <\/strong>(typically Series C and beyond) in <strong>mid to late-stage businesses <\/strong>with a <strong>more proven business idea <\/strong>to <strong>grow <\/strong>(i.e. &#8216;scale&#8217;) <strong>as rapidly as possible<\/strong>. Beyond <strong>financial <\/strong>support, they <strong>offer access to <\/strong>their <strong>vast networks <\/strong>of contacts and <strong>sit on <\/strong>the company&#8217;s <strong>Board of Directors <\/strong>to <strong>provide guidance<\/strong>.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626141775578\"><strong class=\"schema-faq-question\"><em>What is the difference between private equity and venture capital?<\/em><\/strong> <p class=\"schema-faq-answer\"><strong>Venture Capital funds<\/strong> are <em><strong>technically<\/strong><\/em> a type of &#8216;<strong>Private Equity<\/strong>&#8216; fund. They <strong>take in Investor Money <\/strong>(or &#8216;<strong>Equity<\/strong>&#8216;) and <strong>make investments <\/strong>in <strong>privately-held businesses<\/strong>. However, <strong>when people<\/strong> in the Finance industry <strong>refer to &#8216;Private Equity&#8217;<\/strong> (or &#8216;PE&#8217;), they are <strong>typically talking <\/strong>about <strong>LBO funds<\/strong>.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626194997014\"><strong class=\"schema-faq-question\"><em>What is the difference between VC and PE?<\/em><\/strong> <p class=\"schema-faq-answer\"><strong>VC <\/strong>Stands for <strong>Venture Capital <\/strong>and <strong>PE <\/strong>Stands for <strong>Private Equity<\/strong>.<br\/><br\/>The term <strong>&#8216;Private Equity&#8217; technically refers <\/strong>to both <strong>Venture Capital <\/strong>and <strong>Leveraged Buyout (LBO) <\/strong>funds. This is because these firms use investor money (or &#8216;Equity&#8217;) to invest in businesses that are not publicly traded. However, <strong>when people in the Finance<\/strong> industry <strong>refer to &#8216;Private Equity&#8217;<\/strong> (or &#8216;PE&#8217;), they are <strong>typically talking about LBO funds<\/strong>.<br\/><br\/>The <strong>key difference <\/strong>between these funds is that <strong>VC funds <\/strong>invest in <strong>young, early-stage businesses <\/strong>and <strong>LBO funds <\/strong>invest in <strong>mature, late-stage businesses<\/strong>.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626195128072\"><strong class=\"schema-faq-question\"><em>What is Private Equity and Venture Capital?<\/em><\/strong> <p class=\"schema-faq-answer\"><strong>Private Equity <\/strong>and <strong>Venture Capital <\/strong>firms use <strong>investor money (or &#8216;Equity&#8217;) <\/strong>to <strong>invest <\/strong>in <strong>businesses <\/strong>that are <strong>not publicly traded<\/strong>. <br\/><br\/>The <strong>primary difference <\/strong>between these funds is that <strong>Venture Capital <\/strong>funds <strong>invest in young<\/strong>, <strong>early-stage businesses <\/strong>and <strong>Private Equity (i.e. LBO) <\/strong>funds invest in <strong>mature, late-stage businesses<\/strong>.<\/p> <\/div> <\/div>\n\n\n<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/finance-able.com\/\">Home<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\">Private Equity vs Venture Capital &#8211; The Ultimate Guide<\/span><\/span><\/div><style class=\"advgb-styles-renderer\">.wp-block-kadence-iconlist.kt-svg-icon-list-items37622_038003-03:not(.this-stops-third-party-issues){margin-top:0px;margin-bottom:0px;}.wp-block-kadence-iconlist.kt-svg-icon-list-items37622_038003-03 ul.kt-svg-icon-list:not(.this-prevents-issues):not(.this-stops-third-party-issues):not(.tijsloc){margin-top:0px;margin-right:0px;margin-bottom:10px;margin-left:20px;}.wp-block-kadence-iconlist.kt-svg-icon-list-items37622_038003-03 ul.kt-svg-icon-list{grid-row-gap:16px;}.wp-block-kadence-iconlist.kt-svg-icon-list-items37622_038003-03 ul.kt-svg-icon-list .kt-svg-icon-list-item-wrap .kt-svg-icon-list-single{margin-right:12px;}.kt-svg-icon-list-items37622_038003-03 ul.kt-svg-icon-list .kt-svg-icon-list-item-wrap, .kt-svg-icon-list-items37622_038003-03 ul.kt-svg-icon-list .kt-svg-icon-list-item-wrap a{font-size:18.5px;line-height:26px;font-family:Nunito;font-weight:400;}.kt-svg-icon-list-item-37622_ee2af4-d0 .kt-svg-icon-list-single{font-size:8px !important;}.kt-svg-icon-list-item-37622_ee2af4-d0 .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kt-svg-icon-list-item-37622_1040d0-24 .kt-svg-icon-list-single{font-size:8px !important;}.kt-svg-icon-list-item-37622_1040d0-24 .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kt-svg-icon-list-item-37622_2c1bef-d6 .kt-svg-icon-list-single{font-size:8px !important;}.kt-svg-icon-list-item-37622_2c1bef-d6 .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kt-svg-icon-list-item-37622_14e3e2-35 .kt-svg-icon-list-single{font-size:8px !important;}.kt-svg-icon-list-item-37622_14e3e2-35 .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kt-svg-icon-list-item-37622_12761b-c2 .kt-svg-icon-list-single{font-size:8px !important;}.kt-svg-icon-list-item-37622_12761b-c2 .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kt-svg-icon-list-item-37622_4b8520-ee .kt-svg-icon-list-single{font-size:8px !important;}.kt-svg-icon-list-item-37622_4b8520-ee .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kb-table-of-content-nav.kb-table-of-content-id_3b3725-c7 .kb-table-of-content-wrap{margin-top:42px;margin-right:42px;margin-bottom:42px;margin-left:42px;padding-top:20px;padding-right:20px;padding-bottom:20px;padding-left:20px;background-color:#f4f4f4;border-top:3px solid #000000;border-right:3px solid #000000;border-bottom:3px solid #000000;border-left:3px solid #000000;border-top-left-radius:20px;border-top-right-radius:20px;border-bottom-right-radius:20px;border-bottom-left-radius:20px;}.kb-table-of-content-nav.kb-table-of-content-id_3b3725-c7 .kb-table-of-contents-title-wrap{padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kb-table-of-content-nav.kb-table-of-content-id_3b3725-c7 .kb-table-of-contents-title{font-size:31px;line-height:46px;letter-spacing:0.6px;font-family:Nunito;font-weight:700;font-style:normal;text-transform:capitalize;}.kb-table-of-content-nav.kb-table-of-content-id_3b3725-c7 .kb-table-of-content-wrap .kb-table-of-content-list{color:#0693e3;font-size:20.5px;line-height:35px;font-family:Nunito;font-weight:600;font-style:normal;margin-top:var(--global-kb-spacing-sm, 1.5rem);margin-right:0px;margin-bottom:0px;margin-left:0px;}.kb-table-of-content-nav.kb-table-of-content-id_3b3725-c7 .kb-table-of-content-list li{margin-bottom:11px;}.kb-table-of-content-nav.kb-table-of-content-id_3b3725-c7 .kb-table-of-content-list li .kb-table-of-contents-list-sub{margin-top:11px;}.kb-table-of-content-nav.kb-table-of-content-id_3b3725-c7 .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_3b3725-c7 .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_3b3725-c7 .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_3b3725-c7 .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_3b3725-c7 .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_3b3725-c7 .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:before{background-color:#f4f4f4;}@media all and (max-width: 1024px){.kb-table-of-content-nav.kb-table-of-content-id_3b3725-c7 .kb-table-of-content-wrap{border-top:3px solid #000000;border-right:3px solid #000000;border-bottom:3px solid #000000;border-left:3px solid #000000;}}@media all and (max-width: 767px){.kb-table-of-content-nav.kb-table-of-content-id_3b3725-c7 .kb-table-of-content-wrap{border-top:3px solid #000000;border-right:3px solid #000000;border-bottom:3px solid #000000;border-left:3px solid #000000;}}.wp-block-kadence-iconlist.kt-svg-icon-list-items37622_fe0b65-67:not(.this-stops-third-party-issues){margin-top:0px;margin-bottom:0px;}.wp-block-kadence-iconlist.kt-svg-icon-list-items37622_fe0b65-67 ul.kt-svg-icon-list:not(.this-prevents-issues):not(.this-stops-third-party-issues):not(.tijsloc){margin-top:0px;margin-right:0px;margin-bottom:10px;margin-left:20px;}.wp-block-kadence-iconlist.kt-svg-icon-list-items37622_fe0b65-67 ul.kt-svg-icon-list{grid-row-gap:5px;}.wp-block-kadence-iconlist.kt-svg-icon-list-items37622_fe0b65-67 ul.kt-svg-icon-list .kt-svg-icon-list-item-wrap .kt-svg-icon-list-single{margin-right:26px;}.kt-svg-icon-list-items37622_fe0b65-67 ul.kt-svg-icon-list .kt-svg-icon-list-item-wrap, .kt-svg-icon-list-items37622_fe0b65-67 ul.kt-svg-icon-list .kt-svg-icon-list-item-wrap a{font-size:18.5px;line-height:28px;font-family:Nunito;font-weight:400;}.kt-svg-icon-list-item-37622_b6abad-87 .kt-svg-icon-list-single{font-size:8px !important;}.kt-svg-icon-list-item-37622_b6abad-87 .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kt-svg-icon-list-item-37622_da6f28-9a .kt-svg-icon-list-single{font-size:8px !important;}.kt-svg-icon-list-item-37622_da6f28-9a .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kt-svg-icon-list-item-37622_ba9f72-8e .kt-svg-icon-list-single{font-size:8px !important;}.kt-svg-icon-list-item-37622_ba9f72-8e .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kt-svg-icon-list-item-37622_6605b6-43 .kt-svg-icon-list-single{font-size:8px !important;}.kt-svg-icon-list-item-37622_6605b6-43 .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kt-svg-icon-list-item-37622_b01893-59 .kt-svg-icon-list-single{font-size:8px !important;padding:5px !important;border-width:10px !important;}.kt-svg-icon-list-item-37622_b01893-59 .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kt-svg-icon-list-item-37622_41d44e-3c .kt-svg-icon-list-single{font-size:8px !important;padding:5px !important;border-width:10px !important;}.kt-svg-icon-list-item-37622_41d44e-3c .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kt-svg-icon-list-item-37622_a23656-07 .kt-svg-icon-list-single{font-size:8px !important;}.kt-svg-icon-list-item-37622_a23656-07 .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kt-svg-icon-list-item-37622_82e574-6b .kt-svg-icon-list-single{font-size:8px !important;padding:5px !important;border-width:10px !important;}.kt-svg-icon-list-item-37622_82e574-6b .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kt-svg-icon-list-item-37622_429eab-ff .kt-svg-icon-list-single{font-size:8px !important;padding:5px !important;border-width:10px !important;}.kt-svg-icon-list-item-37622_429eab-ff .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kt-svg-icon-list-item-37622_bb8e24-d5 .kt-svg-icon-list-single{font-size:8px !important;padding:3px !important;border-width:10px !important;}.kt-svg-icon-list-item-37622_bb8e24-d5 .kt-svg-icon-list-text mark.kt-highlight{background-color:unset;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kb-row-layout-id37622_46d4b9-31 > .kt-row-column-wrap{align-content:start;}:where(.kb-row-layout-id37622_46d4b9-31 > .kt-row-column-wrap) > .wp-block-kadence-column{justify-content:start;}.kb-row-layout-id37622_46d4b9-31 > .kt-row-column-wrap{column-gap:var(--global-kb-gap-md, 2rem);row-gap:var(--global-kb-gap-md, 2rem);padding-top:var(--global-kb-spacing-sm, 1.5rem);padding-bottom:var(--global-kb-spacing-sm, 1.5rem);grid-template-columns:minmax(0, 1fr);}.kb-row-layout-id37622_46d4b9-31 > .kt-row-layout-overlay{opacity:0.30;}@media all and (max-width: 1024px){.kb-row-layout-id37622_46d4b9-31 > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr);}}@media all and (max-width: 767px){.kb-row-layout-id37622_46d4b9-31 > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr);}}.kadence-column37622_d1e1c4-4f > .kt-inside-inner-col{padding-top:20px;padding-right:10px;padding-bottom:0px;padding-left:10px;}.kadence-column37622_d1e1c4-4f > .kt-inside-inner-col{border-top:2px solid #000000;border-right:2px solid #000000;border-bottom:2px solid #000000;border-left:2px solid #000000;}.kadence-column37622_d1e1c4-4f > .kt-inside-inner-col,.kadence-column37622_d1e1c4-4f > .kt-inside-inner-col:before{border-top-left-radius:2px;border-top-right-radius:2px;border-bottom-right-radius:2px;border-bottom-left-radius:2px;}.kadence-column37622_d1e1c4-4f > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column37622_d1e1c4-4f > .kt-inside-inner-col{flex-direction:column;}.kadence-column37622_d1e1c4-4f > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column37622_d1e1c4-4f > .kt-inside-inner-col{background-color:#f4f4f4;}.kadence-column37622_d1e1c4-4f > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column37622_d1e1c4-4f{position:relative;}@media all and (max-width: 1024px){.kadence-column37622_d1e1c4-4f > .kt-inside-inner-col{border-top:2px solid #000000;border-right:2px solid #000000;border-bottom:2px solid #000000;border-left:2px solid #000000;flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column37622_d1e1c4-4f > .kt-inside-inner-col{border-top:2px solid #000000;border-right:2px solid #000000;border-bottom:2px solid #000000;border-left:2px solid #000000;flex-direction:column;justify-content:center;}}.kb-portfolio-loop37622_ff7f64-5f .kb-blocks-portfolio-grid-item{border-top:2px solid #000000;border-right:2px solid #000000;border-bottom:2px solid #000000;border-left:2px solid #000000;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.kb-portfolio-loop37622_ff7f64-5f .kb-portfolio-overlay-color{background-color:rgba(23, 104, 234, 0);}.kb-portfolio-loop37622_ff7f64-5f .kb-portfolio-overlay-border{border-top:1px solid;border-right:1px solid;border-bottom:1px solid;border-left:1px solid;}.kb-portfolio-loop37622_ff7f64-5f .kb-blocks-portfolio-grid-item:hover .kb-portfolio-overlay-color{background-color:rgba(23, 104, 234, 0.5);}.kb-portfolio-loop37622_ff7f64-5f .kb-blocks-portfolio-grid-item:hover .kb-portfolio-overlay-border{border-top:1px solid rgba(255, 255, 255, 0.8);border-right:1px solid rgba(255, 255, 255, 0.8);border-bottom:1px solid rgba(255, 255, 255, 0.8);border-left:1px solid rgba(255, 255, 255, 0.8);}.kb-portfolio-loop37622_ff7f64-5f .kb-blocks-portfolio-grid-item .entry-title{padding:5px 0px 10px 0px;margin:0px 0px 0px 0px;}.kb-portfolio-loop37622_ff7f64-5f .kb-filter-item{border-width:0px 0px 2px 0px;padding:5px 8px 5px 8px;margin:0px 10px 0px 0px;}.kb-portfolio-loop37622_ff7f64-5f .kb-portfolio-grid-pause-button{color:#fff;background-color:rgba(0, 0, 0, 0.5);border:1px solid transparent;}@media all and (max-width: 1024px){.kb-portfolio-loop37622_ff7f64-5f .kb-blocks-portfolio-grid-item{border-top:2px solid #000000;border-right:2px solid #000000;border-bottom:2px solid #000000;border-left:2px solid #000000;}}@media all and (max-width: 1024px){.kb-portfolio-loop37622_ff7f64-5f .kb-portfolio-overlay-border{border-top:1px solid;border-right:1px solid;border-bottom:1px solid;border-left:1px solid;}}@media all and (max-width: 1024px){.kb-portfolio-loop37622_ff7f64-5f .kb-blocks-portfolio-grid-item:hover .kb-portfolio-overlay-border{border-top:1px solid rgba(255, 255, 255, 0.8);border-right:1px solid rgba(255, 255, 255, 0.8);border-bottom:1px solid rgba(255, 255, 255, 0.8);border-left:1px solid rgba(255, 255, 255, 0.8);}}@media all and (max-width: 767px){.kb-portfolio-loop37622_ff7f64-5f .kb-blocks-portfolio-grid-item{border-top:2px solid #000000;border-right:2px solid #000000;border-bottom:2px solid #000000;border-left:2px solid #000000;}.kb-portfolio-loop37622_ff7f64-5f .kb-portfolio-overlay-border{border-top:1px solid;border-right:1px solid;border-bottom:1px solid;border-left:1px solid;}.kb-portfolio-loop37622_ff7f64-5f .kb-blocks-portfolio-grid-item:hover .kb-portfolio-overlay-border{border-top:1px solid rgba(255, 255, 255, 0.8);border-right:1px solid rgba(255, 255, 255, 0.8);border-bottom:1px solid rgba(255, 255, 255, 0.8);border-left:1px solid rgba(255, 255, 255, 0.8);}}.wp-block-advgb-list ul.advgblist-4c91ed81-2172-4688-a561-02950c3bd082 > li{font-size:18px;}<\/style>",
    "protected": false
  },
  "excerpt": {
    "rendered": "<p>Want to understand the differences between Private Equity vs Venture Capital with&nbsp;simple, visual, and Plain-English explanations?&nbsp;After reading this article, you will understand: TL;DR Want To Learn More About Finance? Check out all of our (free) deep-dive articles in our Analyst Starter Kit: Intro: Private Equity vs Venture Capital The inner workings of Venture Capital, Growth&#8230;<\/p>\n",
    "protected": false
  },
  "author": 1,
  "featured_media": 41913,
  "comment_status": "open",
  "ping_status": "open",
  "sticky": false,
  "template": "",
  "format": "standard",
  "meta": {
    "_acf_changed": false,
    "om_disable_all_campaigns": false,
    "advgb_blocks_editor_width": "",
    "advgb_blocks_columns_visual_guide": "",
    "_kad_blocks_custom_css": "",
    "_kad_blocks_head_custom_js": "",
    "_kad_blocks_body_custom_js": "",
    "_kad_blocks_footer_custom_js": "",
    "_kadence_starter_templates_imported_post": false,
    "_kad_post_transparent": "",
    "_kad_post_title": "",
    "_kad_post_layout": "",
    "_kad_post_sidebar_id": "",
    "_kad_post_content_style": "",
    "_kad_post_vertical_padding": "",
    "_kad_post_feature": "",
    "_kad_post_feature_position": "",
    "_kad_post_header": false,
    "_kad_post_footer": false,
    "_kad_post_classname": "",
    "footnotes": "",
    "gopublish_seo_title": "",
    "gopublish_seo_description": ""
  },
  "categories": [99],
  "tags": [130, 131],
  "class_list": [
    "post-37622",
    "post",
    "type-post",
    "status-publish",
    "format-standard",
    "has-post-thumbnail",
    "hentry",
    "category-the-players",
    "tag-private-equity",
    "tag-venture-capital"
  ],
  "acf": [],
  "yoast_head": "<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Private Equity vs Venture Capital - The Ultimate Guide (2021 Update)<\/title>\n<meta name=\"description\" content=\"Looking for a simple, Plain English explanation of how Private Equity vs Venture Capital (and Growth Equity) firms operate? We can help.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Private Equity vs Venture Capital - The Ultimate Guide (2021 Update)\" \/>\n<meta property=\"og:description\" content=\"A simple, Plain English explanation of how Private Equity vs Venture Capital operate.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/\" \/>\n<meta property=\"og:site_name\" content=\"Financeable Training\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/financeable1\" \/>\n<meta property=\"article:published_time\" content=\"2021-07-13T15:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-21T21:57:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/Private-Equity-Venture-Capital-Cover.png\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"325\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Mike Kimpel\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Private Equity vs Venture Capital - The Ultimate Guide (2021 Update)\" \/>\n<meta name=\"twitter:description\" content=\"A simple, Plain English explanation of how Private Equity vs Venture Capital operate.\" \/>\n<meta name=\"twitter:creator\" content=\"@financeable1\" \/>\n<meta name=\"twitter:site\" content=\"@financeable1\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mike Kimpel\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/\"},\"author\":{\"name\":\"Mike Kimpel\",\"@id\":\"https:\/\/finance-able.com\/#\/schema\/person\/967da5e27f2e418ee5fcdfb407259ebc\"},\"headline\":\"Private Equity vs Venture Capital &#8211; The Ultimate Guide\",\"datePublished\":\"2021-07-13T15:00:00+00:00\",\"dateModified\":\"2025-12-21T21:57:55+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/\"},\"wordCount\":2761,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\/\/finance-able.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/Private-Equity-Venture-Capital-Cover.png\",\"keywords\":[\"Private Equity\",\"Venture Capital\"],\"articleSection\":[\"The Players\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#respond\"]}]},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/\",\"url\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/\",\"name\":\"Private Equity vs Venture Capital - The Ultimate Guide (2021 Update)\",\"isPartOf\":{\"@id\":\"https:\/\/finance-able.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/Private-Equity-Venture-Capital-Cover.png\",\"datePublished\":\"2021-07-13T15:00:00+00:00\",\"dateModified\":\"2025-12-21T21:57:55+00:00\",\"description\":\"Looking for a simple, Plain English explanation of how Private Equity vs Venture Capital (and Growth Equity) firms operate? We can help.\",\"breadcrumb\":{\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#breadcrumb\"},\"mainEntity\":[{\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141542853\"},{\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141558136\"},{\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141755768\"},{\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141775578\"},{\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626194997014\"},{\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626195128072\"}],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#primaryimage\",\"url\":\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/Private-Equity-Venture-Capital-Cover.png\",\"contentUrl\":\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/Private-Equity-Venture-Capital-Cover.png\",\"width\":720,\"height\":325,\"caption\":\"An image showing Private Equity vs Venture Capital\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/finance-able.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Private Equity vs Venture Capital &#8211; The Ultimate Guide\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/finance-able.com\/#website\",\"url\":\"https:\/\/finance-able.com\/\",\"name\":\"Financeable Training\",\"description\":\"Approachable, Intuitive Finance Training\",\"publisher\":{\"@id\":\"https:\/\/finance-able.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/finance-able.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/finance-able.com\/#organization\",\"name\":\"Financeable Training\",\"url\":\"https:\/\/finance-able.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/finance-able.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Financeable-Icon-For-Google-Large.png\",\"contentUrl\":\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Financeable-Icon-For-Google-Large.png\",\"width\":528,\"height\":528,\"caption\":\"Financeable Training\"},\"image\":{\"@id\":\"https:\/\/finance-able.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/financeable1\",\"https:\/\/x.com\/financeable1\",\"https:\/\/www.linkedin.com\/company\/finance-able\",\"https:\/\/www.youtube.com\/c\/FinanceableTraining\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/finance-able.com\/#\/schema\/person\/967da5e27f2e418ee5fcdfb407259ebc\",\"name\":\"Mike Kimpel\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/secure.gravatar.com\/avatar\/161bb651581d0cb6b0401dde037e591d4550b0db25a0c549df7a7faf98df2b72?s=96&d=mm&r=g\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/161bb651581d0cb6b0401dde037e591d4550b0db25a0c549df7a7faf98df2b72?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/161bb651581d0cb6b0401dde037e591d4550b0db25a0c549df7a7faf98df2b72?s=96&d=mm&r=g\",\"caption\":\"Mike Kimpel\"},\"sameAs\":[\"http:\/\/finance-able.com\/\"],\"url\":\"https:\/\/finance-able.com\/author\/admin\/\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141542853\",\"position\":1,\"url\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141542853\",\"name\":\"What is Private Equity?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The term <strong>'Private Equity' technically refers <\/strong>to <strong>Venture Capital<\/strong>, <strong>Growth Equity<\/strong>, and <strong>Leveraged Buyout (LBO) funds<\/strong>.  This is because <strong>these firms <\/strong>use <strong>investor money <\/strong>(or '<strong>Equity<\/strong>') to <strong>invest in businesses <\/strong>that are <strong>not <a href=\\\"https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/how-stock-markets-work\/public-companies\\\" target=\\\"_blank\\\" rel=\\\"noreferrer noopener\\\">publicly traded<\/a><\/strong>. However, <strong>when people<\/strong> in the Finance industry <strong>refer to 'Private Equity'<\/strong> (or 'PE'), they are <strong>typically talking <\/strong>about <strong>LBO funds<\/strong>. \",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141558136\",\"position\":2,\"url\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141558136\",\"name\":\"What is Venture Capital?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong>Venture Capital <\/strong>funds <strong>invest <\/strong>(Seed, Series A, Series B) in <strong>young, early-stage businesses <\/strong>to help the <strong>business <\/strong>prove out a <strong>business idea<\/strong>. <strong>Beyond financial <\/strong>support, they <strong>offer access to <\/strong>their <strong>vast networks <\/strong>of contacts and <strong>sit on <\/strong>the company's <strong>Board of Directors <\/strong>to <strong>provide guidance<\/strong>. \",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141755768\",\"position\":3,\"url\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141755768\",\"name\":\"What is Growth Equity?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong>Growth Equity <\/strong>funds <strong>invest <\/strong>(typically Series C and beyond) in <strong>mid to late-stage businesses <\/strong>with a <strong>more proven business idea <\/strong>to <strong>grow <\/strong>(i.e. 'scale') <strong>as rapidly as possible<\/strong>. Beyond <strong>financial <\/strong>support, they <strong>offer access to <\/strong>their <strong>vast networks <\/strong>of contacts and <strong>sit on <\/strong>the company's <strong>Board of Directors <\/strong>to <strong>provide guidance<\/strong>.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141775578\",\"position\":4,\"url\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141775578\",\"name\":\"What is the difference between private equity and venture capital?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong>Venture Capital funds<\/strong> are <em><strong>technically<\/strong><\/em> a type of '<strong>Private Equity<\/strong>' fund. They <strong>take in Investor Money <\/strong>(or '<strong>Equity<\/strong>') and <strong>make investments <\/strong>in <strong>privately-held businesses<\/strong>. However, <strong>when people<\/strong> in the Finance industry <strong>refer to 'Private Equity'<\/strong> (or 'PE'), they are <strong>typically talking <\/strong>about <strong>LBO funds<\/strong>.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626194997014\",\"position\":5,\"url\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626194997014\",\"name\":\"What is the difference between VC and PE?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong>VC <\/strong>Stands for <strong>Venture Capital <\/strong>and <strong>PE <\/strong>Stands for <strong>Private Equity<\/strong>.<br\/><br\/>The term <strong>'Private Equity' technically refers <\/strong>to both <strong>Venture Capital <\/strong>and <strong>Leveraged Buyout (LBO) <\/strong>funds. This is because these firms use investor money (or 'Equity') to invest in businesses that are not publicly traded. However, <strong>when people in the Finance<\/strong> industry <strong>refer to 'Private Equity'<\/strong> (or 'PE'), they are <strong>typically talking about LBO funds<\/strong>.<br\/><br\/>The <strong>key difference <\/strong>between these funds is that <strong>VC funds <\/strong>invest in <strong>young, early-stage businesses <\/strong>and <strong>LBO funds <\/strong>invest in <strong>mature, late-stage businesses<\/strong>.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626195128072\",\"position\":6,\"url\":\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626195128072\",\"name\":\"What is Private Equity and Venture Capital?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong>Private Equity <\/strong>and <strong>Venture Capital <\/strong>firms use <strong>investor money (or 'Equity') <\/strong>to <strong>invest <\/strong>in <strong>businesses <\/strong>that are <strong>not publicly traded<\/strong>. <br\/><br\/>The <strong>primary difference <\/strong>between these funds is that <strong>Venture Capital <\/strong>funds <strong>invest in young<\/strong>, <strong>early-stage businesses <\/strong>and <strong>Private Equity (i.e. LBO) <\/strong>funds invest in <strong>mature, late-stage businesses<\/strong>.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->",
  "yoast_head_json": {
    "title": "Private Equity vs Venture Capital - The Ultimate Guide (2021 Update)",
    "description": "Looking for a simple, Plain English explanation of how Private Equity vs Venture Capital (and Growth Equity) firms operate? We can help.",
    "robots": {
      "index": "index",
      "follow": "follow",
      "max-snippet": "max-snippet:-1",
      "max-image-preview": "max-image-preview:large",
      "max-video-preview": "max-video-preview:-1"
    },
    "canonical": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/",
    "og_locale": "en_US",
    "og_type": "article",
    "og_title": "Private Equity vs Venture Capital - The Ultimate Guide (2021 Update)",
    "og_description": "A simple, Plain English explanation of how Private Equity vs Venture Capital operate.",
    "og_url": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/",
    "og_site_name": "Financeable Training",
    "article_publisher": "https:\/\/www.facebook.com\/financeable1",
    "article_published_time": "2021-07-13T15:00:00+00:00",
    "article_modified_time": "2025-12-21T21:57:55+00:00",
    "og_image": [
      {
        "width": 720,
        "height": 325,
        "url": "https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/Private-Equity-Venture-Capital-Cover.png",
        "type": "image\/png"
      }
    ],
    "author": "Mike Kimpel",
    "twitter_card": "summary_large_image",
    "twitter_title": "Private Equity vs Venture Capital - The Ultimate Guide (2021 Update)",
    "twitter_description": "A simple, Plain English explanation of how Private Equity vs Venture Capital operate.",
    "twitter_creator": "@financeable1",
    "twitter_site": "@financeable1",
    "twitter_misc": {
      "Written by": "Mike Kimpel",
      "Est. reading time": "1 minute"
    },
    "schema": {
      "@context": "https:\/\/schema.org",
      "@graph": [
        {
          "@type": "Article",
          "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#article",
          "isPartOf": {
            "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/"
          },
          "author": {
            "name": "Mike Kimpel",
            "@id": "https:\/\/finance-able.com\/#\/schema\/person\/967da5e27f2e418ee5fcdfb407259ebc"
          },
          "headline": "Private Equity vs Venture Capital &#8211; The Ultimate Guide",
          "datePublished": "2021-07-13T15:00:00+00:00",
          "dateModified": "2025-12-21T21:57:55+00:00",
          "mainEntityOfPage": {
            "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/"
          },
          "wordCount": 2761,
          "commentCount": 1,
          "publisher": { "@id": "https:\/\/finance-able.com\/#organization" },
          "image": {
            "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#primaryimage"
          },
          "thumbnailUrl": "https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/Private-Equity-Venture-Capital-Cover.png",
          "keywords": ["Private Equity", "Venture Capital"],
          "articleSection": ["The Players"],
          "inLanguage": "en-US",
          "potentialAction": [
            {
              "@type": "CommentAction",
              "name": "Comment",
              "target": [
                "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#respond"
              ]
            }
          ]
        },
        {
          "@type": ["WebPage", "FAQPage"],
          "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/",
          "url": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/",
          "name": "Private Equity vs Venture Capital - The Ultimate Guide (2021 Update)",
          "isPartOf": { "@id": "https:\/\/finance-able.com\/#website" },
          "primaryImageOfPage": {
            "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#primaryimage"
          },
          "image": {
            "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#primaryimage"
          },
          "thumbnailUrl": "https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/Private-Equity-Venture-Capital-Cover.png",
          "datePublished": "2021-07-13T15:00:00+00:00",
          "dateModified": "2025-12-21T21:57:55+00:00",
          "description": "Looking for a simple, Plain English explanation of how Private Equity vs Venture Capital (and Growth Equity) firms operate? We can help.",
          "breadcrumb": {
            "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#breadcrumb"
          },
          "mainEntity": [
            {
              "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141542853"
            },
            {
              "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141558136"
            },
            {
              "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141755768"
            },
            {
              "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141775578"
            },
            {
              "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626194997014"
            },
            {
              "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626195128072"
            }
          ],
          "inLanguage": "en-US",
          "potentialAction": [
            {
              "@type": "ReadAction",
              "target": [
                "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/"
              ]
            }
          ]
        },
        {
          "@type": "ImageObject",
          "inLanguage": "en-US",
          "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#primaryimage",
          "url": "https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/Private-Equity-Venture-Capital-Cover.png",
          "contentUrl": "https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/Private-Equity-Venture-Capital-Cover.png",
          "width": 720,
          "height": 325,
          "caption": "An image showing Private Equity vs Venture Capital"
        },
        {
          "@type": "BreadcrumbList",
          "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#breadcrumb",
          "itemListElement": [
            {
              "@type": "ListItem",
              "position": 1,
              "name": "Home",
              "item": "https:\/\/finance-able.com\/"
            },
            {
              "@type": "ListItem",
              "position": 2,
              "name": "Private Equity vs Venture Capital &#8211; The Ultimate Guide"
            }
          ]
        },
        {
          "@type": "WebSite",
          "@id": "https:\/\/finance-able.com\/#website",
          "url": "https:\/\/finance-able.com\/",
          "name": "Financeable Training",
          "description": "Approachable, Intuitive Finance Training",
          "publisher": { "@id": "https:\/\/finance-able.com\/#organization" },
          "potentialAction": [
            {
              "@type": "SearchAction",
              "target": {
                "@type": "EntryPoint",
                "urlTemplate": "https:\/\/finance-able.com\/?s={search_term_string}"
              },
              "query-input": {
                "@type": "PropertyValueSpecification",
                "valueRequired": true,
                "valueName": "search_term_string"
              }
            }
          ],
          "inLanguage": "en-US"
        },
        {
          "@type": "Organization",
          "@id": "https:\/\/finance-able.com\/#organization",
          "name": "Financeable Training",
          "url": "https:\/\/finance-able.com\/",
          "logo": {
            "@type": "ImageObject",
            "inLanguage": "en-US",
            "@id": "https:\/\/finance-able.com\/#\/schema\/logo\/image\/",
            "url": "https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Financeable-Icon-For-Google-Large.png",
            "contentUrl": "https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Financeable-Icon-For-Google-Large.png",
            "width": 528,
            "height": 528,
            "caption": "Financeable Training"
          },
          "image": {
            "@id": "https:\/\/finance-able.com\/#\/schema\/logo\/image\/"
          },
          "sameAs": [
            "https:\/\/www.facebook.com\/financeable1",
            "https:\/\/x.com\/financeable1",
            "https:\/\/www.linkedin.com\/company\/finance-able",
            "https:\/\/www.youtube.com\/c\/FinanceableTraining"
          ]
        },
        {
          "@type": "Person",
          "@id": "https:\/\/finance-able.com\/#\/schema\/person\/967da5e27f2e418ee5fcdfb407259ebc",
          "name": "Mike Kimpel",
          "image": {
            "@type": "ImageObject",
            "inLanguage": "en-US",
            "@id": "https:\/\/secure.gravatar.com\/avatar\/161bb651581d0cb6b0401dde037e591d4550b0db25a0c549df7a7faf98df2b72?s=96&d=mm&r=g",
            "url": "https:\/\/secure.gravatar.com\/avatar\/161bb651581d0cb6b0401dde037e591d4550b0db25a0c549df7a7faf98df2b72?s=96&d=mm&r=g",
            "contentUrl": "https:\/\/secure.gravatar.com\/avatar\/161bb651581d0cb6b0401dde037e591d4550b0db25a0c549df7a7faf98df2b72?s=96&d=mm&r=g",
            "caption": "Mike Kimpel"
          },
          "sameAs": ["http:\/\/finance-able.com\/"],
          "url": "https:\/\/finance-able.com\/author\/admin\/"
        },
        {
          "@type": "Question",
          "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141542853",
          "position": 1,
          "url": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141542853",
          "name": "What is Private Equity?",
          "answerCount": 1,
          "acceptedAnswer": {
            "@type": "Answer",
            "text": "The term <strong>'Private Equity' technically refers <\/strong>to <strong>Venture Capital<\/strong>, <strong>Growth Equity<\/strong>, and <strong>Leveraged Buyout (LBO) funds<\/strong>.  This is because <strong>these firms <\/strong>use <strong>investor money <\/strong>(or '<strong>Equity<\/strong>') to <strong>invest in businesses <\/strong>that are <strong>not <a href=\"https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/how-stock-markets-work\/public-companies\" target=\"_blank\" rel=\"noreferrer noopener\">publicly traded<\/a><\/strong>. However, <strong>when people<\/strong> in the Finance industry <strong>refer to 'Private Equity'<\/strong> (or 'PE'), they are <strong>typically talking <\/strong>about <strong>LBO funds<\/strong>. ",
            "inLanguage": "en-US"
          },
          "inLanguage": "en-US"
        },
        {
          "@type": "Question",
          "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141558136",
          "position": 2,
          "url": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141558136",
          "name": "What is Venture Capital?",
          "answerCount": 1,
          "acceptedAnswer": {
            "@type": "Answer",
            "text": "<strong>Venture Capital <\/strong>funds <strong>invest <\/strong>(Seed, Series A, Series B) in <strong>young, early-stage businesses <\/strong>to help the <strong>business <\/strong>prove out a <strong>business idea<\/strong>. <strong>Beyond financial <\/strong>support, they <strong>offer access to <\/strong>their <strong>vast networks <\/strong>of contacts and <strong>sit on <\/strong>the company's <strong>Board of Directors <\/strong>to <strong>provide guidance<\/strong>. ",
            "inLanguage": "en-US"
          },
          "inLanguage": "en-US"
        },
        {
          "@type": "Question",
          "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141755768",
          "position": 3,
          "url": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141755768",
          "name": "What is Growth Equity?",
          "answerCount": 1,
          "acceptedAnswer": {
            "@type": "Answer",
            "text": "<strong>Growth Equity <\/strong>funds <strong>invest <\/strong>(typically Series C and beyond) in <strong>mid to late-stage businesses <\/strong>with a <strong>more proven business idea <\/strong>to <strong>grow <\/strong>(i.e. 'scale') <strong>as rapidly as possible<\/strong>. Beyond <strong>financial <\/strong>support, they <strong>offer access to <\/strong>their <strong>vast networks <\/strong>of contacts and <strong>sit on <\/strong>the company's <strong>Board of Directors <\/strong>to <strong>provide guidance<\/strong>.",
            "inLanguage": "en-US"
          },
          "inLanguage": "en-US"
        },
        {
          "@type": "Question",
          "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141775578",
          "position": 4,
          "url": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626141775578",
          "name": "What is the difference between private equity and venture capital?",
          "answerCount": 1,
          "acceptedAnswer": {
            "@type": "Answer",
            "text": "<strong>Venture Capital funds<\/strong> are <em><strong>technically<\/strong><\/em> a type of '<strong>Private Equity<\/strong>' fund. They <strong>take in Investor Money <\/strong>(or '<strong>Equity<\/strong>') and <strong>make investments <\/strong>in <strong>privately-held businesses<\/strong>. However, <strong>when people<\/strong> in the Finance industry <strong>refer to 'Private Equity'<\/strong> (or 'PE'), they are <strong>typically talking <\/strong>about <strong>LBO funds<\/strong>.",
            "inLanguage": "en-US"
          },
          "inLanguage": "en-US"
        },
        {
          "@type": "Question",
          "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626194997014",
          "position": 5,
          "url": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626194997014",
          "name": "What is the difference between VC and PE?",
          "answerCount": 1,
          "acceptedAnswer": {
            "@type": "Answer",
            "text": "<strong>VC <\/strong>Stands for <strong>Venture Capital <\/strong>and <strong>PE <\/strong>Stands for <strong>Private Equity<\/strong>.<br\/><br\/>The term <strong>'Private Equity' technically refers <\/strong>to both <strong>Venture Capital <\/strong>and <strong>Leveraged Buyout (LBO) <\/strong>funds. This is because these firms use investor money (or 'Equity') to invest in businesses that are not publicly traded. However, <strong>when people in the Finance<\/strong> industry <strong>refer to 'Private Equity'<\/strong> (or 'PE'), they are <strong>typically talking about LBO funds<\/strong>.<br\/><br\/>The <strong>key difference <\/strong>between these funds is that <strong>VC funds <\/strong>invest in <strong>young, early-stage businesses <\/strong>and <strong>LBO funds <\/strong>invest in <strong>mature, late-stage businesses<\/strong>.",
            "inLanguage": "en-US"
          },
          "inLanguage": "en-US"
        },
        {
          "@type": "Question",
          "@id": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626195128072",
          "position": 6,
          "url": "https:\/\/finance-able.com\/private-equity-vs-venture-capital\/#faq-question-1626195128072",
          "name": "What is Private Equity and Venture Capital?",
          "answerCount": 1,
          "acceptedAnswer": {
            "@type": "Answer",
            "text": "<strong>Private Equity <\/strong>and <strong>Venture Capital <\/strong>firms use <strong>investor money (or 'Equity') <\/strong>to <strong>invest <\/strong>in <strong>businesses <\/strong>that are <strong>not publicly traded<\/strong>. <br\/><br\/>The <strong>primary difference <\/strong>between these funds is that <strong>Venture Capital <\/strong>funds <strong>invest in young<\/strong>, <strong>early-stage businesses <\/strong>and <strong>Private Equity (i.e. LBO) <\/strong>funds invest in <strong>mature, late-stage businesses<\/strong>.",
            "inLanguage": "en-US"
          },
          "inLanguage": "en-US"
        }
      ]
    }
  },
  "author_meta": {
    "display_name": "Mike Kimpel",
    "author_link": "https:\/\/finance-able.com\/author\/admin\/"
  },
  "featured_img": "https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/Private-Equity-Venture-Capital-Cover-300x135.png",
  "taxonomy_info": {
    "category": [{ "value": 99, "label": "The Players" }],
    "post_tag": [
      { "value": 130, "label": "Private Equity" },
      { "value": 131, "label": "Venture Capital" }
    ]
  },
  "featured_image_src_large": [
    "https:\/\/finance-able.com\/wp-content\/uploads\/2021\/04\/Private-Equity-Venture-Capital-Cover.png",
    720,
    325,
    false
  ],
  "author_info": {
    "display_name": "Mike Kimpel",
    "author_link": "https:\/\/finance-able.com\/author\/admin\/"
  },
  "comment_info": 92,
  "category_info": [
    {
      "term_id": 99,
      "name": "The Players",
      "slug": "the-players",
      "term_group": 0,
      "term_taxonomy_id": 99,
      "taxonomy": "category",
      "description": "",
      "parent": 0,
      "count": 7,
      "filter": "raw",
      "cat_ID": 99,
      "category_count": 7,
      "category_description": "",
      "cat_name": "The Players",
      "category_nicename": "the-players",
      "category_parent": 0
    }
  ],
  "tag_info": [
    {
      "term_id": 130,
      "name": "Private Equity",
      "slug": "private-equity",
      "term_group": 0,
      "term_taxonomy_id": 130,
      "taxonomy": "post_tag",
      "description": "",
      "parent": 0,
      "count": 7,
      "filter": "raw"
    },
    {
      "term_id": 131,
      "name": "Venture Capital",
      "slug": "venture-capital",
      "term_group": 0,
      "term_taxonomy_id": 131,
      "taxonomy": "post_tag",
      "description": "",
      "parent": 0,
      "count": 1,
      "filter": "raw"
    }
  ],
  "coauthors": [],
  "tax_additional": {
    "categories": {
      "linked": [
        "<a href=\"https:\/\/finance-able.com\/category\/the-players\/\" class=\"advgb-post-tax-term\">The Players<\/a>"
      ],
      "unlinked": ["<span class=\"advgb-post-tax-term\">The Players<\/span>"]
    },
    "tags": {
      "linked": [
        "<a href=\"https:\/\/finance-able.com\/category\/the-players\/\" class=\"advgb-post-tax-term\">Private Equity<\/a>",
        "<a href=\"https:\/\/finance-able.com\/category\/the-players\/\" class=\"advgb-post-tax-term\">Venture Capital<\/a>"
      ],
      "unlinked": [
        "<span class=\"advgb-post-tax-term\">Private Equity<\/span>",
        "<span class=\"advgb-post-tax-term\">Venture Capital<\/span>"
      ]
    }
  },
  "comment_count": "1",
  "relative_dates": {
    "created": "Posted 5 years ago",
    "modified": "Updated 6 months ago"
  },
  "absolute_dates": {
    "created": "Posted on July 13, 2021",
    "modified": "Updated on December 21, 2025"
  },
  "absolute_dates_time": {
    "created": "Posted on July 13, 2021 11:00 am",
    "modified": "Updated on December 21, 2025 4:57 pm"
  },
  "featured_img_caption": "",
  "series_order": "",
  "gopublish_integration": {
    "active": true,
    "seo_fields_available": true,
    "seo_fields": {
      "title": "gopublish_seo_title",
      "description": "gopublish_seo_description"
    }
  },
  "_links": {
    "self": [
      {
        "href": "https:\/\/finance-able.com\/wp-json\/wp\/v2\/posts\/37622",
        "targetHints": { "allow": ["GET"] }
      }
    ],
    "collection": [
      { "href": "https:\/\/finance-able.com\/wp-json\/wp\/v2\/posts" }
    ],
    "about": [
      { "href": "https:\/\/finance-able.com\/wp-json\/wp\/v2\/types\/post" }
    ],
    "author": [
      {
        "embeddable": true,
        "href": "https:\/\/finance-able.com\/wp-json\/wp\/v2\/users\/1"
      }
    ],
    "replies": [
      {
        "embeddable": true,
        "href": "https:\/\/finance-able.com\/wp-json\/wp\/v2\/comments?post=37622"
      }
    ],
    "version-history": [
      {
        "count": 346,
        "href": "https:\/\/finance-able.com\/wp-json\/wp\/v2\/posts\/37622\/revisions"
      }
    ],
    "predecessor-version": [
      {
        "id": 56414,
        "href": "https:\/\/finance-able.com\/wp-json\/wp\/v2\/posts\/37622\/revisions\/56414"
      }
    ],
    "wp:featuredmedia": [
      {
        "embeddable": true,
        "href": "https:\/\/finance-able.com\/wp-json\/wp\/v2\/media\/41913"
      }
    ],
    "wp:attachment": [
      {
        "href": "https:\/\/finance-able.com\/wp-json\/wp\/v2\/media?parent=37622"
      }
    ],
    "wp:term": [
      {
        "taxonomy": "category",
        "embeddable": true,
        "href": "https:\/\/finance-able.com\/wp-json\/wp\/v2\/categories?post=37622"
      },
      {
        "taxonomy": "post_tag",
        "embeddable": true,
        "href": "https:\/\/finance-able.com\/wp-json\/wp\/v2\/tags?post=37622"
      }
    ],
    "curies": [
      { "name": "wp", "href": "https:\/\/api.w.org\/{rel}", "templated": true }
    ]
  }
}