How do all of these professions/careers/livelihoods fit together? A quick definition of each is as follows:
I believe there is a closer connection between a) bankers and private equiteers, and b) venture capitalists and entrepreneurs. I say this because private equiteers spend a lot of time sourcing deals, just like bankers. Whereas, venture capitalists spend a lot of time short-listing deals (in which entrepreneurs have approached them) and are therefore much more concerned with the business concept (rather than the sale of capital).
So what’s the implication of this? Well, it potentially explains what the ideal skills are for PE and VC firms. I’m not saying the best private equiteers are bankers, just that their skills are more suited to the role of a private equiteer compared to a venture capitalist. For venture capitalists, I believe it’s more important to have people with real entrepreneurial experience, not only to evaluate deals, but to help commercialise concepts. Comments welcome.