In this curated episode of the Revenue Builders Podcast, John McMahon and John Kaplan are joined by Dave Tiley from Align Capital Partners to explore the critical differences between Private Equity (PE) and Venture Capital (VC) investments. Dave delves into the distinct strategies, risk appetites, and operational approaches that differentiate PE from VC, offering invaluable insights for entrepreneurs, investors, and business leaders. From early-stage ventures to mature businesses, this episode provides a comprehensive look at how different funding models can drive growth and innovation.
KEY TAKEAWAYS
[00:00:47] VC investments focus on early-stage companies with high-risk, high-reward potential.
[00:01:34] PE investments target companies with established revenue and earnings, aiming to accelerate growth.
[00:03:30] Differences in board makeup between VC-backed and PE-backed firms.
[00:05:15] Embracing the "good to great" philosophy to drive radical improvements in PE-backed companies.
[00:05:58] Operational optimization strategies to scale companies from millions to hundreds of millions.
HIGHLIGHT QUOTES
[00:00:47] "Venture capital is big bets, hoping one out of ten succeeds."
[00:01:34] "For us as growth investors in the private equity space, we're looking for a company we think, hey, they got something special, but maybe with some more expertise, maybe with some more jet fuel, we can come alongside them, partner with them to accelerate the growth curve."
[00:02:49] "Our whole idea is to be a servant leader and help these CEOs in anything we can do to help them be better each and every day."
[00:05:15] "When we partner with a company, they've already done something really well, right? And they get rewarded for that stage. But to reward our investors in the next tranche, that 2.0 version, we got to radically improve the company."
[00:06:13] "As you built companies to get to 20 million is one thing, but to get to 50 and then 100, they're just different stages and different steps, and there's a different playbook really for each."
Listen to the full episode with Dave Tiley through this link:
https://revenue-builders.simplecast.com/episodes/from-good-to-great-with-dave-tiley
Check out John McMahon’s book here:
Amazon Link: https://a.co/d/1K7DDC4
Check out Force Management’s Ascender platform here:
https://my.ascender.co/Ascender/
Revenue Builders