Private Equity Explained (in 90 seconds)

What this video covers

Private equity, which typically invests in more mature companies, often in the Series B+ stage or later, by acquiring substantial stakes. It outlines how private equity firms operate and generate returns.

Transcript

So, what do you do? I buy companies. What kind of companies? I buy companies that are in financial difficulty. That promise must come for a bargain, huh? Well, company I'm buying this week, I'm getting it for a bargain price of about 1 billion. A billion dollars? Yes. Wow. You must be really smart, huh? I only got through the 11th grade. How far did you go in school? I went all the way. Your folks must be really proud, huh? So, you don't actually have a billion dollars? No, I get some of it from banks, investors. It's not an easy thing to do. And you don't make anything >> No. and you don't build anything. >> No. So, what do you do with the companies once you buy them? I sell them. How do you do that? You sell them. Well, I don't sell the whole company. I break it up in pieces and then I sell it off. It's worth more than the whole. So, it's sort of like stealing cars and

selling them for the parts, right? Yeah, sort of, but legal.

Series B+ guides to read next

• Startup Funding Stages: A Guide to Raising Capital
• Series B Funding: A Founder's Guide to the Metrics

All Series B+ guides

More fundraising videos (422)

• From Banker to Founder Finding My Calling | Founder Video
• Subscription Pivot Scaling Your Business Effortlessly
• Colin Wiel: Taking A $1B-Company Public, Merging
• Delegate & Conquer Stop Doing Everything Yourself!
• Mistakes To Avoid When Creating Your Pitch Deck
• Ryan Wang On Raising $71M To Provide Companies
• He Built A $686 Billion Empire | Founder Video
• Where Startup Investors Focus
• Sankalp Arora On Raising $74M To Bring Real-Time
• What Are Pre-Seed Rounds Of Financing | Founder Video
• Startup Exit Secrets Building a Business for 13 Years
• One Delivery Changed Everything | Founder Video
• Ruairi Kelleher On Building With His Team A $575M Business
• Know Your Value—Or Someone Else Will | Founder Video
• How To Value A Startup Without Revenue | Founder Video
• Orr Yarkoni On Raising $46M To Create Sustainable Dyes
• $18 Billion… Still Working 9-5 | Founder Video
• Jason Flick On How He Sold His Startup To AT&T For Over
• Investor vs Operator The Crucial Skill Set Difference
• What Startup Investors Look For In Entrepreneurs Before
• Sudheesh Nair On Raising $47M To Develop And Operate
• Startup Growth Secrets Curiosity & Mentorship
• Richie Serna On Raising $102 Million To Enable Every
• Founders How to Attract Top Talent & Mitigate Risks

Fundraising shorts (217)

• This Kills 90% Of Startups
• She Underpaid Him… Regretfully | Founder Short
• Wise Advice The Secret to Long Term Success | Founder Short
• The Truth About Innovation
• The $1.3 Trillion Mistake
• Discover Your Passion Build, Solve, Simplify!
• CEO Secrets Unpopular Choices for Success | Founder Short
• This Is Why Startups Fail

Library · Fundraising articles A–Z · Pitch deck guides