![]() The money is typically used for product development and business expansion and this is when the first full time Sales & Marketing people get hired. □ Seed (VC): These companies have now at least have somewhat validated their product/service with customers or convincing research. □Pre-VC Stage Firms: Techstars, Y Combinator To raise funds these companies will ask friends or family to financial back them. This involves a company which may have an 'idea' but has not properly validated it yet and built it into a business. □ Angel (pre-VC): "Angel" investors give early stage support to startup level type companies when institutional investors are not ready to invest yet. VCs/PEs may also lock your money up for multiple years. Particularly for PEs, these investments are not as easily accessed by the average investor because they are usually very large in size (tens if not hundreds of millions of US$) and not listed in public markets. □ PE targets more MATURE companies that may be close to listing on a stock exchange or are larger in size. □ VC is likely an investment into an EARLY stage company (think startups). ![]() "Private markets", however, deal with "venture capital" (VC) or "private equity" (PE) which is ownership in a company that is not publicly listed. Most of us are familiar with investing in the "public market" like stocks. ![]() ✏️The majority of VC exits are acquisitions, not IPOs. ✏️VC financing is the exception, not the norm, among startups. ✏️PE and VC are subsets of a larger financial landscape known as private markets. □Private Equity & Venture Capital Re-Examined□Īnalysis by Ken Shih & Foreword Brian Ortiz ![]()
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