Private equity investors are all about streamlining a current business in order to make it profitable. They typically buy out the business in its entirety, in order to have the freedom they need to restructure it. Private equity firms will then do everything in their power to turn the business around, often bringing in new management and changing methods to become more profitable.Venture Capital
Venture capitalists make their money by finding good deals in young businesses. They offer to invest a set amount of money for a stake in the company. Venture capitalists may be very hands-off, or they may want a say in how the company is run. Typically they look for promising young businesses that need an injection of cash in order to grow. Venture capitalists may own a portion of a business, but compared to private equity firms they rarely buy a company outright.