Venture capital and private equity play a critical role in funding startups from "summary" of How Finance Works by Mihir Desai
Venture capital and private equity are essential sources of funding for startups. These forms of investment provide crucial capital to young companies that may not be able to secure financing through traditional means. Venture capital involves investors providing funding to startups in exchange for an ownership stake in the company. This allows investors to potentially earn a high return on their investment if the startup is successful. Private equity, on the other hand, involves investors providing funding to more mature companies in order to help them grow or restructure. Both venture capital and private equity investors play a critical role in the success of startups. These investors not only provide much-needed capital but also bring valuable expertise and connections to the table....
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