Private equity is an investment in mature companies, while venture capital focuses on startups and early-stage businesses.
Private equity firms buy majority controlling stakes in stable businesses, while venture capitalists invest in minority stakes in high-growth startups.
Investment banking plays a vital role in both private equity and venture capital, offering services such as mergers and acquisitions advisory and fundraising assistance.
Understanding the differences between private equity and venture capital, and the role of investment banking in these approaches, is crucial for informed fundraising and portfolio development.