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Please, click on the PDF link: Private Equity can be used to develop new products and technologies, to expand working capital, to make acquisitions, or to strengthen a company’s balance sheet. Whether it is providing startup capital for a highly speculative R&D venture or expansion financing for an established pre-IPO organization, private equity funding is the essential lifeblood of dynamic growth-oriented companies.  Private Equity can also resolve ownership and management issues – a succession in family-owned companies, or the buyout or buy-in of a business by experienced managers may be achieved using private equity.        Venture capital is capital provided to fund the creation or expansion of unlisted business endeavors, especially a highly speculative business with a high potential payback. It is a source of financing for start-up companies and new or turnaround ventures that involve investment risk but offer the prospect for above average future profits. A venture capital funding arrangement will typically entail relinquishing some level of ownership and control of the business. Offsetting the high risk the investor takes is the promise of high return on the investment.  The initial, start-up money is referred to as "seed money" and entails the greatest risk. If the project gets off the ground it may require additional financing at additional "rounds" or the "mezzanine level" before the company is finally brought to the market and the venture capitalist can enjoy handsome rewards. Please, click on the PDF link: |
