A form of private equity focused on early-stage, high-growth-potential companies, typically in technology and life sciences sectors. VC investors provide capital in exchange for equity stakes and active board involvement, accepting higher risk in pursuit of outsized returns.
An alternative asset class consisting of capital invested in private companies or used to take public companies private. PE firms raise funds from institutional investors and high-net-worth individuals, investing in companies to create value through operational improvements, strategic repositioning, and financial engineering.
A type of PE investment that targets minority or majority stakes in established, profitable companies with high growth potential. Growth equity investments typically use little to no leverage and focus on organic expansion, market share gains, and operational scaling.
The estimated value of a company immediately before a new round of financing. Pre-money valuation is a critical negotiation point in investment transactions as it directly determines how much equity investors receive for their capital.