Avalerian | Private equity | Venture Capital | |
---|---|---|---|
Ability to hand over day-to-day management | We take over management | Often required to remain post-acquisition | Continue running the company |
Founder payout | Bespoke terms with full or partial cash exit | Locked into long-term incentive structure | No exit until sale or IPO |
Process | Fast and simple process that can work with your timeline | Process can last for months | Months-long complicated process, requiring multiple investors to buy in |
Time horizon | Plan to operate for long-term | Goal to sell in 3-5 years | Focus only until next round |
Approach to growth | Long-term sustainable growth orientation | Focus on short-term value creation, which often leads to cost-cutting and layoffs | Unsustainable growth fueled by VC capital that pushes company to its limits |