#KeyNotesN4 : Types of investment in PE and VC.

There are a wide range of PE and VC investments but the most common types of investment are as follows : 

1- #Seed and early-stage 
This type of investment is for young (very young in the case of #seed_investments) companies and are primarily the domain of “Angel Investors” and VC firms. Seed and early stage investments are often distinguished by the ‘round’ of investment. ‘Rounds’ are when a company takes on a fundraising 
drive to raise capital, often from a number of different Angel Investors or VC firms. 
The funding rounds begin with a ‘seed’ investment and is followed by A, B, then C funding rounds, with the amount of capital being raised increasing on each round. 
The main differences between rounds of investment are the maturity levels of the 
businesses, the type of investors involved, the purpose of raising capital, and how it is ultimately allocated.

2-#Growth_capital
Growth capital sits between VC and PE. Whilst many early-stage businesses will not yet be making a profit, growth capital investments tend to be in companies that are in the later stages of development and are a bit older, larger, generating a profit, and have identified 
an area for new business growth that needs additional capital to support the growth. Growth capital usually takes the form of a minority investment – i.e. not a 
controlling stake.

3- Le #Capital_Retournement ou #Distressed_PE est une branche très particulière car elle se concentre uniquement sur des entreprises en restructuration qui possèdent des leviers de création de valeur préalablement identifiés par les potentiels repreneurs. Les fonds vont aider ces entreprises à se redresser par l’apport de financement en fonds propres. Avant que ces sociétés souvent déficitaires renouent avec les bénéfices, les fonds opèrent une restructuration interne de l’entreprise. Les fonds de capital retournement ont un ancrage très local car ils doivent être très informés sur la législation du pays.


4- #Buyout 
There are a number of different types of buyout –#MBO#LBO#OBO and so on – but the most important thing to remember is that the term refers to a private equity firm buying a controlling equity stake in a company. Buyouts range from the acquisition of relatively small 
businesses to very large ones, and can involve tens of millions of pounds right up to hundreds of millions and in some cases billions.

5- #Later_stage_venture 
Financing provided for an operating company which may or may not be profitable. 

6- #Other_early_stage 
Funding provided to companies that have initiated commercial manufacturing but require further funds to cover additional capital expenditure and working capital before they reach the break-even point. They will not be generating a profit yet.