The Difference between Private Equity and Venture Capital

Rick Smith is the Co-founder of Crosscut Ventures (crosscutventure...)
Private equity is a safer investment and venture capital looks for greater returns.
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[@larryscheinfeld]

Simple and well-explained

[@btw-3006]

Great explanation. Easy to understand and really cleared up the difference between private equity and venture capital.

[@chinkyfist6655]

Thank you so much for explaining the differences in such a simple way for us who have no knowledge or background in these topics. It was very easy to understand. I get it now!

[@SmartieTV]

Awesome! Been looking for a short and on point explanation and here it is.

[@x24gamingteam66]

best explanation ever

[@davidalen9279]

Excellent clear concise explanation. Thank you.

[@jimmyrose1363]

The best explanation i had so far.

[@jocelynrucker6877]

Clear & concise...excellent job!

[@directedbyMax]

explained it really well

[@alycassum1805]

4 points and got right in to the video. Absolutely loved it. Great explanation!

[@seethecash9542]

Thank you for posting this video online. It was very useful for me.

[@coelhocointech9841]

I invest in both, private companies and startups

[@maxxmainzer875]

sick man

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I invest in myself by reading self help books

[@Christian-mn8dh]

how?

[@MrSnypy]

That was a great, simple explanation.

[@rafaelribeiro5501]

Thank you for your very simple explanation :)

[@llDeathll]

Great video. You explained it very well. Thanks.

[@honeysuckle9830]

This was just what I needed! Thank you so so much!

[@artmx91]

Clear and easy to understand, thanks!

[@jonathangeorge5814]

Simple and informative. Love it! Thank you for this vid! :)

[@santhosh8290]

Not very clear with the last point..

[@dygmonika]

very helpful, thank you

[@abhinavitsmebellamy]

Thank you. Really well explained!!

[@LifeofSol1]

Great explanation! Got me a VC job! Thank you

[@smtownsingapore]

Now now now, I can start my assignment :) Thanks!

[@adingosine6990]

Thanks!

[@distortionto1066]

can anybody explain the last point? i dont get it

[@Usernamehere263]

Private equity uses both debt and equity to finance their investment, Venture Capital uses only equity to finance their investment.

[@distortionto1066]

@@Usernamehere263 equity means stocks right?

[@Usernamehere263]

@@distortionto1066 not exactly, in this case only equity means that Venture Capital uses their own money to invest in the startup/emerging company

[@distortionto1066]

@@Usernamehere263 ohh... so private equity borrows money AND use their own money while VC just use their own money?

[@Usernamehere263]

@@distortionto1066 from what the video said, yeah.

[@devielouw8359]

Very informative, thank you!

[@andreo_cr]

still dont get it why debt involved in private equity ??? from the term itself we could know that all of it supposed to be an equity :/

[@josephjaspermedia3709]

Debt is usually involved because of the huge amount used in buying an established company. It could run into hundreds of millions or even billions of dollars. To reduce the risk, investors typically use a model known as a leveraged buyout (LBO) wherein a bank provides a shunk of the funds as a 'loan' which is secured with some of the bought company's assets as collateral.

[@Alexthebrokkie]

Thank you sir , that was helpful .

[@vijayalen8386]

Simple and Clear

[@MorningStar-hb4mi]

Nicely explained

[@sukisumile4527]

Thank you

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L

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