Private Equity vs Venture Capital – What’s the Difference?

 

Professional investor comparing private equity and venture capital performance charts on a digital dashboard.

The difference between private equity and venture capital lies in the type of companies they target, the investment size, and the level of control they seek. Private equity focuses on established businesses, while venture capital invests in early-stage startups with growth potential.

This article clarifies how these two major private market investment strategies differ — from structure and risk to returns and management control. You’ll gain a precise understanding of where each fits within the private markets, how they operate, and which aligns best with your goals as an investor or entrepreneur.

What Is Private Equity?

Private equity (PE) refers to investments made directly into established, privately held companies — or into public companies that are taken private through acquisition. These investments often aim to improve operations, restructure finances, and create measurable growth before exiting for profit. 

Continued. 

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