VC vs. Buyout Funds: Investing in Dreams vs. Reality #shorts

Added: 2026-05-15

[00:00:00]VC is an investor in dreams.

[00:00:03]And buyout funds, which is the largest category of private equity, VC is also a piece of private equity, but it's a smaller piece. The largest piece of of private equity is called buyout funds.

[00:00:15]Buyout funds don't invest in dreams.

[00:00:17]They they buy companies that have track records, that have histories of revenue and and earnings. And you know, 100% growth rate in the world of VC is I went from a dollar of revenue to two dollars of revenue. It's 100% growth. You know, in in the world of buyout, it's they've got a decade or more of of track record.

[00:00:40]Again, every company I went into had been existence for 40 years. And I got them to bust the the growth curve and get on a 30 plus percent growth rate and take them someplace that they had never been before. So, VC is investing in dreams. Think of it more as it's a home run derby every time you step to the plate. There's a lot of strike outs, there's a lot of hits, but it's you know, essentially you're swinging for a home run every time. In the world of buyout funds, you're looking for singles and doubles. And so, batting average, you know, batting average is really low in VC. And it's higher in in buyout funds.