“The main issues and responsibilities were quite similar during my internship in VC and PE. During both internships, I was mainly involved in searching for the right investments by analysing businesses and researching markets.”
However, there are still some differences to point out: In PE, tasks are more quantitative and technical, as well as strategic. You work with complex financial models and analyses. In VC, on the other hand, you analyse a high number of companies and develop pattern recognition. You need a feeling for business opportunities and good management.
“I found that the biggest difference was the key investment considerations during the investment analysis phase. In VC it was important that the start-up solved a problem and brought an innovative technology or business plan to the market, while in PE the historical and expected financial results were an important investment consideration.” – Yasmine Lurvink
Moreover, Private Equities work with fewer, larger deals and create value for mature companies through operational improvement, growth strategies, etc. Venture Capital works with smaller and riskier deals. They invest in multiple startups with high growth potential to spread the risk.
Ready to start your career in Private Equity or Venture Capital?