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Vijetha

Vijetha (Querist)
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30 March 2009 What is the difference between Private Equity & Venture Capital?

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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30 March 2009 private equity is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange.

Venture Capital is a term which is used to describe very high risky capital. It is a method to raise finance. Its major Features:-

1. It involved very high risk. Risky projects space research experiments etc.
2. It may involve a foreign country even.
3. It will have heavy capital outlay.
4. It will involve high repayment period.
5. Venture capital will be provided to compnies which have high profit and growth potentials

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Vijetha

Vijetha (Querist)
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30 March 2009 Thank u Mam, But i think there is a lot of similarities b/w this....
I didnt get it properly... I read Venture Capital is the one type of private equity.......

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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31 March 2009 It depends if the enterprise is a company then the venture capital investment can be called as Venture Capital Investment.

Pradeep Kamath

Pradeep Kamath (Expert)
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03 January 2011 As i understand:
When u have a venture (normally a new project of its type) and someone invests in your venture, it is called venture capital. This happens at the very beginning stage of the venture or business.
When u need to expand the capacity, or start a business which is normally not new of its kind, investors invest in the form of private equity. Private equity is meant for already structured businesses whereas venture capital is meant for new businesses.

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