Can’t attract VC money? Buy a business with private equity
Venture capital investors are looking for different things than private equity investors. Venture capital firms are typically growth-oriented, early-stage investors looking for these proof-of-concept points before cutting a check. Private equity firms are typically cash-flow oriented, later-stage investors, looking to invest in companies in excess of $10 million in revenues and $3 million in EBITDA (A company’s earnings before interest, taxes, depreciation, and amortization) in size. So, as an early-stage startup, why on earth should you consider reaching out to private equity investors, if you are not making progress with venture capital investors? Because you are going to pitch them with an entirely different growth…
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