Private Equity vs Venture Capital: A Comparison for Forex Traders

5 min read

Private Equity and Venture Capital are both forms of investing that involve the purchase of an ownership interest in a company. Private Equity involves the buying of a company’s equity with the intention of increasing its value and then eventually selling it for a higher price. Venture Capital involves investing in the earliest stages of a company and can involve providing liquidity for a start-up or providing a stake in a business for future investors. Unlike Private Equity, Venture Capital typically requires a high rate of return for investors. The main differences between Private Equity and Venture Capital are the types of companies they invest in, the amount of money invested, and the expected rate of return.