Venture Capital is all about growth. Very similar to private equity venture capital firms use their money or the money of investors to buy equity into companies. However one of the main differences, and what separates a PE firm from a VC firm is that VC firms are primarily investing in startups.
If you have ever heard of the story of a start-up they usually get the ball rolling and after some time they need money to scale operations and bring their idea to life. Often times this means going to a private investor or going to an institutional investor like a venture capital firm. It is the dream of most start-ups to have a VC fund give them money because it validates the idea and it gives them the VC firms resources.
Most people when they think if venture capital they think of Silicon Valley. Which makes sense, that is where they are primarily located. But venture capital firms can be anywhere in the country and they each have their own strategies and the types of companies they like to invest in. For example, some firms are focused on small businesses in the midwest. Sloley investing and growing companies until they are profitable or sell for a good amount of money. But some firms are solely based on investing in technology, anything from software to cutting edge AI. VC firms are at the forefront of so much innovation in the marketplace today. THey are often filled with talented forward-thinking individuals. So if that sounds like the tye of person you are give VC a shot!
One of the primary differences between a VC firm and a PE firm is that PE firms usually are investing a lot of money upfront and are confident that the business will do well. But many VC firms take the strategy of investing money in lots and lots of firms knowing that maybe some will fail, but they are banking on the home run. The Facebook or Uber of their portfolio makes them and their investors the big money. One of the exciting things about VC is the potential to analyze and create new business ideas.