Courtesy – cobizmag
Funds that are invested by investors or individuals to small business to establish and grow is called as venture capital. Venture capital helps new private companies who are not able to get their funds from the public sector. Venture capital has its fair share of risks however, it the top qualified entrepreneurs in the market that help these small businesses. This type of capital allows the businesses to develop from its initial stage before they go public. The investors who help newly launched businesses are called as venture capitalist where the funding is termed as equity capital. Major Highlights of Venture Capital are listed below:
- These are small investments used to grow the company in their primary stage
- Funds offered to companies is in its initial stage.
- There are no limitations to the number of firms when it comes to funding.
Private Equity – Companies and investors that offer funds in private firms are called private equity. They do not belong to stock exchange however; the funds are usually offered by individuals that acquire shares in private companies or have authority over public companies and turn into private companies. The funds offered by private equity are offered to an already existing company who wish to expand and develop more. This type of equity is known to be one of the most attractive funding options to the financial services. Major Highlights of Private Equity are listed below:
- It is the investments to those firms which are not listed on any public stock exchange
- Funds offered to companies that already exist which is the later stage.
- There are only a few selected companies when it comes to funding.
Get in touch with corporate finance firms to learn more.
