Originally published February 21, 2012
Venture Capital and Private Equity get a lot of media attention.
Sometimes they are the "genius" talent scouts of the
business world, investing into companies with astounding foresight.
In other narratives, they are the ruthless capitalists, taking
control of companies and ejecting management teams from the
driver's seat like carjackers. As it turns out, neither of
these stories are very accurate.
Venture Capital and Private Equity firms are key components of
the corporate finance landscape, offering growth capital and
liquidity at critical moments in the evolution of companies when
more traditional sources of cash, like banks or public markets, are
unavailable or unwilling to invest. But like all professional
investors, these firms have a job to perform on behalf of their
limited partners. These firms survive their own torturous sales and
diligence processes to convince pension funds, banks, universities,
hedge funds,
