what is the difference between a venture capital and private equity?
Posted by admin on 16 Dec 2008 7:48 am. Filed under Investing.
shappy
pls help because i am confused. and also is there a link with sovereign wealth funds and Derivatives ?
pls help because i am confused. and also is there a link with sovereign wealth funds and Derivatives ?
3 Comments to “what is the difference between a venture capital and private equity?”
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On December 16th, 2008 at 10:15 pm
Venture capital refers to the start up of companies…..e.g. you need venture capital to start a business so you ask several people to invest in the company or the corporation, in turn you give them a promise to repay their monies or you give them an interest in the company or the venture.
Private equity….money that you invest in already existing companies that are not public or traded on the exchanges
On December 19th, 2008 at 12:11 pm
Sovereign wealth funds are moneys that countries are wielding.
Derivatives are bets that you can make on the performance of stocks in a high-stakes manner.
The venture capital is a subset of private equity. VC is for startups, whereas private equity will encompass much larger projects, e.g. recent purchase of Chrysler (although it’s been divested as of last month).
On December 21st, 2008 at 5:34 pm
my peers are close
both terms are loose terms. in most circles they are synonyms.
VC companies lend to all phases; start-up, expanding and
successful. NOT SURE why they bother with 3rd or 4th stage
but they do.
Private equity becomes public equity when the firm
goes public. UNLESS the VC is using his
public stock for his private investing, his money is private.
[and angels are short term private investors]