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title: Private Equity Investments, as Compared to...
description: Discover the key differences between private equity investments and other financing options and how Alten Capital leverages strategic expertise to drive value in technology services businesses.
image: https://alten.capital/hubfs/Private%20equity.jpg
---

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[Alten Capital](https://alten.capital/blog/author/alten)  January 10, 2023

# Private Equity Investments, as Compared to...

At Alten Capital, we connect with companies of varied maturity levels, from super-young organizations to mature corporations. As companies evolve, they need different capital solutions to scale and continue to grow.

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We want to share an oversimplified approach to private capital raising for small companies to provide a framework of how a founder can think of their capital needs based on the maturity stage of their business. Not all cases will fit into this super simple viewpoint, but let's take a crack at it.

 

![Angel Investments vs Venture Capital vs Private Equity](https://alten.capital/hs-fs/hubfs/angel-venture-equity.png?width=1576&height=490&name=angel-venture-equity.png)

 

When founders start a business, they do not have revenue streams in place and are looking for product-market fit. They typically have an unproven business to start. It is common at this stage to raise capital from friends and family members or from angel investors. This initial category of investors backs an unproven idea with potential. Angel investors are not typically organized into firms but invest independently. These would be the smallest checks a founder gets early on.

As the business proves itself and the company finds some product-market fit, customers start to pay for its products or services, and the business starts to have revenue. Founders may burn cash, but [unit economics](https://www.profitwell.com/recur/all/unit-economics) is potentially good enough to scale the business. Regardless of the stage (seed, series A, etc), venture capital firms are stepping in to back strong founders and high-potential ideas that show traction to take the company to the next level. Depending on multiple factors, venture capital checks can range from a single million to low double digits.

Lastly, as the business continues to scale, generate revenue, and derive profitable activities, private equity steps in to help the company continue to scale. Alten Capital fits into this "profitable growth" stage by investing in profitable high-growth technology services companies. Valuations and investments are higher at this stage than the prior two stages mentioned.

We hope this uncomplicated view can help founders decide when to reach out to us to build a partnership. At Alten Capital we want to support founders and management teams scaling technology services businesses.

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We invest in exceptional management teams to accelerate high-growth technology services businesses.

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