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Private Equity, Venture Capital, and Crowdfunding

Private Markets Overview

Private equity (PE) and venture capital (VC) invest in companies not listed on public stock exchanges. Traditional PE buys established companies, improves operations, and sells at a profit after 5-7 years. VC invests in early-stage startups with high growth potential—most fail, but the winners (like early investments in Google, Facebook, or Uber) return 10-100x. Historically, these investments required accredited investor status ($200,000+ income or $1 million+ net worth) and minimum investments of $250,000-1,000,000. The potential for higher returns comes with an illiquidity premium—your money is locked up for years with no ability to sell.

Private Equity, Venture Capital, and Crowdfunding

Private Markets Overview

Private equity (PE) and venture capital (VC) invest in companies not listed on public stock exchanges. Traditional PE buys established companies, improves operations, and sells at a profit after 5-7 years. VC invests in early-stage startups with high growth potential—most fail, but the winners (like early investments in Google, Facebook, or Uber) return 10-100x. Historically, these investments required accredited investor status ($200,000+ income or $1 million+ net worth) and minimum investments of $250,000-1,000,000. The potential for higher returns comes with an illiquidity premium—your money is locked up for years with no ability to sell.