What is the fundamental difference between a venture capital firm and other forms of private equity?
A. Venture capital firms usually are involved in the formation of new businesses, often starting with nothing more than a concept. They assume a wide variety of risks, including technology, development, market and execution risks. Mezzanine and buyout firms such as Tangent work primarily with existing companies with proven business plans. We still take risk, but it s limited to execution and financial risk.
