The Difference Between PE and VC Investments with Dave Tiley

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/