Venture Capital and Growth Equity
Free CAIA Level I lesson in Private Equity. 38 min read, ~5,701 words.
VC returns follow a power law: a handful of winners drive the entire fund. The four stages are Pre-seed, Seed, Series A, and Late-stage/Expansion (Series B, C, D). Three risk premiums (business, liquidity, idiosyncratic) justify a 400 to 800 bp spread over public equity. Staged financing plus fund reserves preserve...
Read the full lesson, free →
Worked examples, audio narration, and practice. No signup to read.
What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- intro
- firms and funds
- institutional programs
- subscription lines
- lp gp lifecycle
- publicly traded gps
- exit ipos
- exit spacs
- vc overview
- vc stages
- vc risk returns
- vc return research
- vc valuations
- vc financing
- vc securities
- vc dynamics
- growth equity intro
- growth equity valuation
- growth equity deals
- buyouts overview
- buyout strategies
- buyout characteristics
- lbos
- pipes
- liquid alts
- long term performance
Browse all free CAIA Level I lessons or jump into free CAIA Level I practice questions.