What is Venture Capital/Private Equity?

Private equity provides equity capital to enterprises not quoted on a stock market. Private equity can be used to develop new products and technologies, to expand working capital, to make acquisitions, or to strengthen a company´s balance sheet. It can also resolve ownership and management issues - a succession in family-owned companies, or the buy-out or buy-in of a business by experienced managers may be achieved using private equity funding.

Private equity invests in growth companies at all stages of their development. These stages can be recognised as Early Stage, which encompasses Seed and Start-up stage companies; Venture Capital, which encompasses Early Stage and Expansion stage companies; and Buyouts and Buyins, also recognised as later stage companies. 


EVCA: How private equity works