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How do the drivers of venture capital and buyout cycles differ?

How do the drivers of venture capital and buyout cycles differ?

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Venture capital deals with the allocation of funds and capital to a company that has recently started its business. The drivers in venture capital is the risk in the business and the return that the business will earn when it starts functioning. The buyout cycle deals with buying a stake in the company. The drivers here also include the risk and return analysis.

The difference between the venture capital and buyout cycle is that the venture capital will not have a share of rights in the company while in buyout the company that is buying has rights in the company.

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