Wednesday, July 6, 2011

VC and PE Culture Clash

Venture Capital and Private Equity may seem to do the same thing but that is deceiving. Here is a great NY Times article that discusses how each has a different mindset and culture. It revolves around the recent Private Equity sale of Skype and how former employees stock options were handled. Basically, Private Equity operates in the New York Investment Banker mode of rape and pillage while the Venture Capital firms are west coast relationship oriented. It is the short term kill versus the long term relationship. I don't think that Silicon Valley will favor the PE mode of business over VC if given the choice.

http://dealbook.nytimes.com/2011/07/05/in-silicon-valley-a-culture-clash-sullies-a-romance/?scp=1&sq=Private%20equity%20and%20ventrue%20capital&st=cse

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