Private Equity Vs Venture Capital

Private Equity

Private equity, at its most basic, is equity shares representing ownership of, or an interest in, an entity that is not publicly listed or traded. Private equity is a source of investment capital that comes from high net worth individuals and firms. These investors buy shares of private companies or gain control of public companies with the intention of taking them private and ultimately delisting them from public stock exchanges.

Key Features:

•  Private equity firms mostly buy mature companies that are already established. Private equity firms buy these companies and streamline operations to increase revenues. 

• Private equity firms mostly buy 100% ownership of the companies in which they invest. As a result, the companies are in total control of the firm after the buyout. 

• They invest in already established and mature companies so the chances of absolute losses from such an investment are minimal.

Venture Capital

Venture Capital is financing given to start-up companies and small businesses that are seen as having the potential to break out. The funding for this financing usually comes from wealthy investors, investment banks, and any other financial institutions. The investment doesn't have to be just financial, but can also be offered via technical or managerial expertise.

Key Features:

• Venture capital firms mostly invest in start-ups with high growth potential. 

• Venture capital firms invest in 50% or less of the equity of the companies. Most venture capital firms prefer to spread out their risk and invest in many different companies. 

• Venture capitalists spend less in each company since they mostly deal with start-ups with unpredictable chances of failure or success.

B_ Factor

3 B’s of Internet Marketing:

BUILD your own Traffic- It’s the most important that creating/getting traffic on your website/any social media. For getting better and best enough traffic through your website is to share your website through every Social Media, Classified channels by building a Do- Follow links and share it as much as possible. And another factor is to create some free kinds of stuff like a free demo of your service, free Article e-Books or sending emails as much as possible to your retention customers by giving them new exciting offers or any interesting and funny video subscription about your products and services for free to new customers.

For Instance: cure.fit Strategy- Giving any 2 free classes from Zumba, Boxing and many more.

BUY Traffic- This is the easiest way to get traffic but you have to invest a little bit of your capital smartly and effectively in the target location/audience of different age groups accordingly, through various Paid Ads tools.

For Instance: AMEX (American Express)

Borrow Traffic- In this we Borrow traffic from other people websites. In this, we run an affiliate marketing program in which we list our product/Service on another website which has a huge list and a good traffic rate, each sale of our products/services done from our affiliate sites, we give a certain percentage of each sale to the affiliate, this is also, a proven method to increase our sales and service. The best part is if we can have many affiliates the probability of building our list and sales are very high.

Best Website of Affiliate Marketing: amazon, Shopify.