Gajendra Chandel’s Post

Independent Director | Investor-Mentor to Visionary #Founders | Orchestrating #Strategy-to-Execution Excellence | Driving#Entrepreneurship | Transformative Growth Architect #Luxury, #Tech, #Digital, #AI #AtmnirbharBharat

6mo

Founders, it’s crucial to recognize that Private Equity (PE) and Venture Capital (VC) serve distinct purposes. PE focuses on optimising established companies for more predictable returns, often bringing in new management, streamlining systems. In contrast, VC invests in high-growth potential startups, supporting founding teams to drive innovation. Aligning with the right investor type is essential, as it will significantly influence your growth strategy and long-term success. When founders understand these distinctions, they can choose the right partner, setting the stage for sustainable growth and long-term success. #Startups #Entrepreneurship #VentureCapital #PrivateEquity #BusinessGrowth #Leadership #Investing #ScaleUp #Founders

Chris Tottman

Partner at Notion Capital

6mo

"PE and VC are just different flavors of the same thing." Dead wrong. And dangerous thinking for founder Here's why: → PE typically buys majority stakes in mature companies. → VC takes minority stakes in high-growth startups. PE wants steady cash flow. VC bets on exponential growth. PE uses leverage. VC relies on equity. PE often replaces management. VC backs founding teams. PE aims for 3x returns in 5-7 years. VC targets 10x+ in 10 years. Founders: Know the difference. It impacts everything: → Who you pitch. → How you grow. → When you exit. Don't conflate PE and VC. Your startup's future depends on it. — ♻️ Found this helpful? Repost it so your network can learn from it, too. And follow me, Chris Tottman, for more content like this. #BrainDumps | BrainDump #82

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Chris Tottman

Partner at Notion Capital

6mo

Thanks for the repost and great thoughts 💭 loads more great content in my feed for you and your network to enjoy and repurpose 🌞 feel free to check them all out and push out your favourites ✅

Dr. Shashikant G. Kurbetti

Ph d,Independent Director IICA , Academic Faculty, Fellow NIPM, Principal HR Consultant & Trainer

6mo

Well said! sir

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Chris Tottman

Partner at Notion Capital
6mo
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"PE and VC are just different flavors of the same thing." Dead wrong. And dangerous thinking for founder Here's why: → PE typically buys majority stakes in mature companies. → VC takes minority stakes in high-growth startups. PE wants steady cash flow. VC bets on exponential growth. PE uses leverage. VC relies on equity. PE often replaces management. VC backs founding teams. PE aims for 3x returns in 5-7 years. VC targets 10x+ in 10 years. Founders: Know the difference. It impacts everything: → Who you pitch. → How you grow. → When you exit. Don't conflate PE and VC. Your startup's future depends on it. — ♻️ Found this helpful? Repost it so your network can learn from it, too. And follow me, Chris Tottman, for more content like this. #BrainDumps | BrainDump #82
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Sergio A. Escobar

Helping founders build & scale tech startups through a Corporate Venture Capital Fund, Family Office Fund & Pre-Seed Accelerator | GCV Powerlist 2021-2022
6mo
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Crucial differences between Private Equity investment vs Venture Capital investment. This will help entrepreneurs at growth stage make the right choices when approaching financiers!
Chris Tottman

Partner at Notion Capital
6mo

"PE and VC are just different flavors of the same thing." Dead wrong. And dangerous thinking for founder Here's why: → PE typically buys majority stakes in mature companies. → VC takes minority stakes in high-growth startups. PE wants steady cash flow. VC bets on exponential growth. PE uses leverage. VC relies on equity. PE often replaces management. VC backs founding teams. PE aims for 3x returns in 5-7 years. VC targets 10x+ in 10 years. Founders: Know the difference. It impacts everything: → Who you pitch. → How you grow. → When you exit. Don't conflate PE and VC. Your startup's future depends on it. — ♻️ Found this helpful? Repost it so your network can learn from it, too. And follow me, Chris Tottman, for more content like this. #BrainDumps | BrainDump #82
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Alan Smithson

Father, Founder, Futurist, Author & DJ. Building a better future for humanity.
6mo
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This is the best breakdown of PE vs. VC I have seen.
Chris Tottman

Partner at Notion Capital
6mo

"PE and VC are just different flavors of the same thing." Dead wrong. And dangerous thinking for founder Here's why: → PE typically buys majority stakes in mature companies. → VC takes minority stakes in high-growth startups. PE wants steady cash flow. VC bets on exponential growth. PE uses leverage. VC relies on equity. PE often replaces management. VC backs founding teams. PE aims for 3x returns in 5-7 years. VC targets 10x+ in 10 years. Founders: Know the difference. It impacts everything: → Who you pitch. → How you grow. → When you exit. Don't conflate PE and VC. Your startup's future depends on it. — ♻️ Found this helpful? Repost it so your network can learn from it, too. And follow me, Chris Tottman, for more content like this. #BrainDumps | BrainDump #82
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Umbereen S. Nehal, MD, MPH, MBA
6mo
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Agree with most of this. There are also different types of #VC. Early stage VC do invest in a founding team. Later stage may replace the team, as founders may own only single digits and be in the minority. Late stage VC will act more like #PE. In #business, there is accountability and you can be replaced by the board, even if it is “your” company that you founded. It happened to Steve Jobs. What makes you think it can’t happen to you? Investors care about #ROI. Keeping your job requires delivering results.
Chris Tottman

Partner at Notion Capital
6mo

"PE and VC are just different flavors of the same thing." Dead wrong. And dangerous thinking for founder Here's why: → PE typically buys majority stakes in mature companies. → VC takes minority stakes in high-growth startups. PE wants steady cash flow. VC bets on exponential growth. PE uses leverage. VC relies on equity. PE often replaces management. VC backs founding teams. PE aims for 3x returns in 5-7 years. VC targets 10x+ in 10 years. Founders: Know the difference. It impacts everything: → Who you pitch. → How you grow. → When you exit. Don't conflate PE and VC. Your startup's future depends on it. — ♻️ Found this helpful? Repost it so your network can learn from it, too. And follow me, Chris Tottman, for more content like this. #BrainDumps | BrainDump #82
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Aurelia Flores

Investment Director - Virginia Venture Partners
6mo Edited
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Interesting comparison - thanks, Chris Tottman for the summary. Investors, do you see founders confused about the capital stack? Founders, do you believe there is clarity about the different flavors of investor? (Angels and early-stage VCs seem to have some overlap recently IMO) Check out the comments for more nuances and a couple great resources.
Chris Tottman

Partner at Notion Capital
6mo

"PE and VC are just different flavors of the same thing." Dead wrong. And dangerous thinking for founder Here's why: → PE typically buys majority stakes in mature companies. → VC takes minority stakes in high-growth startups. PE wants steady cash flow. VC bets on exponential growth. PE uses leverage. VC relies on equity. PE often replaces management. VC backs founding teams. PE aims for 3x returns in 5-7 years. VC targets 10x+ in 10 years. Founders: Know the difference. It impacts everything: → Who you pitch. → How you grow. → When you exit. Don't conflate PE and VC. Your startup's future depends on it. — ♻️ Found this helpful? Repost it so your network can learn from it, too. And follow me, Chris Tottman, for more content like this. #BrainDumps | BrainDump #82
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Denisia Pereira

Principal @Top Down Ventures | Early Stage VC focused on MSP software companies
6mo
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Difference between PE and VC.
Chris Tottman

Partner at Notion Capital
6mo

"PE and VC are just different flavors of the same thing." Dead wrong. And dangerous thinking for founder Here's why: → PE typically buys majority stakes in mature companies. → VC takes minority stakes in high-growth startups. PE wants steady cash flow. VC bets on exponential growth. PE uses leverage. VC relies on equity. PE often replaces management. VC backs founding teams. PE aims for 3x returns in 5-7 years. VC targets 10x+ in 10 years. Founders: Know the difference. It impacts everything: → Who you pitch. → How you grow. → When you exit. Don't conflate PE and VC. Your startup's future depends on it. — ♻️ Found this helpful? Repost it so your network can learn from it, too. And follow me, Chris Tottman, for more content like this. #BrainDumps | BrainDump #82
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John Guzowski, CPA

Fractional CFO for Law Firms | Treat Your Law Firm Like a Business
6mo
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Great summary of the differences.
Chris Tottman

Partner at Notion Capital
6mo

"PE and VC are just different flavors of the same thing." Dead wrong. And dangerous thinking for founder Here's why: → PE typically buys majority stakes in mature companies. → VC takes minority stakes in high-growth startups. PE wants steady cash flow. VC bets on exponential growth. PE uses leverage. VC relies on equity. PE often replaces management. VC backs founding teams. PE aims for 3x returns in 5-7 years. VC targets 10x+ in 10 years. Founders: Know the difference. It impacts everything: → Who you pitch. → How you grow. → When you exit. Don't conflate PE and VC. Your startup's future depends on it. — ♻️ Found this helpful? Repost it so your network can learn from it, too. And follow me, Chris Tottman, for more content like this. #BrainDumps | BrainDump #82
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James T. Palermo, CFA, CAIA, CFP(R)

Partner and Director of RIA Acquisitions
6mo
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Venture Capital and Private Equity each have a place in the portfolios of high net- worth and ultra high net worth individuals. Ask your advisor about allocations for each.
Chris Tottman

Partner at Notion Capital
6mo

"PE and VC are just different flavors of the same thing." Dead wrong. And dangerous thinking for founder Here's why: → PE typically buys majority stakes in mature companies. → VC takes minority stakes in high-growth startups. PE wants steady cash flow. VC bets on exponential growth. PE uses leverage. VC relies on equity. PE often replaces management. VC backs founding teams. PE aims for 3x returns in 5-7 years. VC targets 10x+ in 10 years. Founders: Know the difference. It impacts everything: → Who you pitch. → How you grow. → When you exit. Don't conflate PE and VC. Your startup's future depends on it. — ♻️ Found this helpful? Repost it so your network can learn from it, too. And follow me, Chris Tottman, for more content like this. #BrainDumps | BrainDump #82
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Prabhat Kumar Sinha

Managing Director at Illuminarc Services & Consulting Pvt Ltd
6mo
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Often taken for granted, this subject carries so much weight. especially in times when startup culture world over is on the run. if the fund seeker knows the requirement and chemistry of the fund provider, they may chose the right time and path. so simply explained below.
Chris Tottman

Partner at Notion Capital
6mo

"PE and VC are just different flavors of the same thing." Dead wrong. And dangerous thinking for founder Here's why: → PE typically buys majority stakes in mature companies. → VC takes minority stakes in high-growth startups. PE wants steady cash flow. VC bets on exponential growth. PE uses leverage. VC relies on equity. PE often replaces management. VC backs founding teams. PE aims for 3x returns in 5-7 years. VC targets 10x+ in 10 years. Founders: Know the difference. It impacts everything: → Who you pitch. → How you grow. → When you exit. Don't conflate PE and VC. Your startup's future depends on it. — ♻️ Found this helpful? Repost it so your network can learn from it, too. And follow me, Chris Tottman, for more content like this. #BrainDumps | BrainDump #82
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