The major differences between private equity and venture capital are as follows −
Investments made in those companies which are not publicly listed on any stock exchange.
Buys from mature and public companies.
Focus will be on all kind of industries.
Want to acquire almost full stake of the company in an LBO.
Combination structure (debt + equity).
Investments made in few companies.
Mainly focus on corporate governance.
Less risk involved.
Financing small business.
Invest mostly in start-up or early stage companies.
Focus on technology, biotech and clean tech companies.
Acquires minority stake (<50%) of the company.
Only equity structure.
Investments made in large number of companies.
Mainly focus on management capability.
Very high risk involved.