What is the difference between venture capital and private equity?

Venture capital (VC) and private equity (PE) are both investment types but differ in focus and timing. VC funds invest in early-stage startups with high growth potential, typically providing smaller amounts ($500K-$5M) to companies in their infancy. They accept higher risk for potentially massive returns. Private equity targets established companies, investing larger sums ($10M+) to acquire, restructure, and improve operations before selling at a profit. PE focuses on mature businesses with proven revenue, while VC bets on future potential. In crypto, VC funds have backed projects like Ethereum and Solana early on, while PE firms increasingly enter after projects achieve stability.