Difference between leverage buyout and venture capital

We will deal with the main differences between leverage buyout  and venture capital . It is very common in the world of financial markets to call leveraged purchases for their translation into English, leverage buyouts (LBO).

Both are very common operations in the venture capital ( private equity English). When compared between one and the other, it can be seen that there are large differences between the two types of financing.

First, these differences come from the target company, while in venture capital companies are sought in their early stages of development ( start-ups ), LBO operations look for companies in a much more mature process, where they seek to gain in efficiency and not so much a huge capital injection as it happens in start-ups.

 

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