Working at a PE vs. VC portco
Learn the differences between working at a PE vs. VC portfolio company
There a few key things to keep in mind when picking your next company:
- Stage
- CEO
- Is the company a breakout company or toxic
One thing many people forget to think about is the ownership structure. Whispered works with a lot of investors and talent teams at VC/PE firms and we’ve learned how different VC and PE can be
A definition of VC and PE
The two types of investors have blended together in recent years with flavors of PE including:
- Cost-cutting to leverage cash flows
- Growth PE - willing to take a dip in EBITDA for growth
A good distinction is whether the investor takes minority (VC) or control (PE) stakes in their portfolio companies.
Differences working at a VC vs. PE Portco
“Growth is always more valuable but can be elusive while efficiency/profitability is often the safer play at scale.” Top PE Operating Partner
| VC | PE | |
|---|---|---|
| Company profiles | More horizontal plays focused on giant TAM and unicorn potential | Often vertical plays with smaller TAM |
| Priority | Growth | EBITDA most of the time, especially towards the end of investment periods |
| Exit strategy | Unicorn or dead-end in career Seed to A ~30% Seed to A ~30% A to B ~40% A to B ~40% | Exit with every company (public, strategic or other PE) |
| GTM strategy | Rapid expansion, larger budgets | Efficient growth and more focused marketing |
| Culture | GSD | Structured, strategic |
| Equity | Normal 4 year vest with 1 year cliff | Typically vests at exit (you don't stay, you don't vest) |
Find top VC and PE portcos for your next role
Whispered is built to help senior GTM executives find their next roles at investor-backed companies. We collaborate closely with investors and talent teams to connect great talent.
If you want to find breakout companies, visit our company insights directory to filter by unique data points and… if you know insights on a company, contribute them (and get access to insights on other companies)