What is the difference between Venture Capital (VC) and Private Equity (PE)?

Private equities mostly invest in established and mature companies. A private equity fund usually owns 100 percent of the equity of the companies in which they invest. The capital edifice of both funds is different. They buy different types of companies, invest different amounts of money and equity in the companies they finance.

Private equity funds have a mix of equity and debt in their investment. Venture capitalists only make equity investments. The venture capital firms keep the focus on technology such as biotech or cleantech. Private equity is investment capital in a business that is not publicly listed or traded.