Private Equity: Private equity firms invest in mature, established companies, typically involving substantial capital. In India, the typical deal size is upward of INR 100 crs. They often acquire a significant minority stake or majority stake in the company and take an active role in its management through board seats, focusing on restructuring and growth to enhance long-term value before the eventual sale.

Venture Capital: Venture capital firms focus on startups and early-stage companies, providing smaller investments. In India, the typical deal size is between INR 5 cr to INR 100 cr. They usually take a minority stake and offer strategic support and guidance without exerting control over the company’s day-to-day operations, aiming to nurture innovation and growth.

Seed Stage: Initial funding is to develop an idea, create a prototype, or conduct market research. It typically involves smaller amounts of capital and high risk.

Early Stage: Includes Series A and B rounds, providing capital for scaling operations, product development, and market expansion. It focuses on companies with a proven concept and some revenue generation.

Growth Stage: Series C and beyond are aimed at scaling, entering new markets, and achieving profitability. It involves larger investments for established companies with significant growth potential.

Late Stage: Funds for companies approaching an exit strategy, such as an IPO or acquisition, to maximize value and prepare for liquidity events.

Digital Transformation: Increased investments in technology, e-commerce, fintech, and digital health as businesses are now adapt to digital operations.
Sustainability and ESG: Growing focus on Environmental, Social, and Governance (ESG) factors, with investments targeting sustainable and responsible businesses.
Sector Diversification: Expansion beyond traditional sectors like real estate and infrastructure to healthcare, education, and consumer goods.
Buyout Opportunities: Rise in buyout deals as private equity firms seek control over businesses for operational improvements and value creation.

Financial Performance: Revenue growth, profitability, cash flow, and overall financial health.
Market Position: Competitive landscape, market share, and industry growth prospects.
Management Team: Experience, track record, and ability to execute the business plan.
Growth Potential: Future growth opportunities, scalability, and innovation.
Risk Factors: Operational, market, regulatory, and financial risks.
Comparable Transactions: Valuations of similar companies in recent deals.
Economic Conditions: Overall economic environment and market conditions affecting the industry.

Revenue Growth: Consistent and rapid increase in revenue over time, indicating market demand and business scalability.
Customer Acquisition Cost (CAC): The cost of acquiring a new customer, reflecting marketing and sales efficiency.
Customer Lifetime Value (CLTV): The total revenue a business can expect from a single customer account, highlighting long-term profitability.
Burn Rate: The rate at which a startup is spending its capital, crucial for understanding runway and financial health.
Market Traction: Indicators like user growth, active users, and engagement rates show product-market fit and adoption.
Gross Margin: The difference between revenue and cost of goods sold, indicating financial efficiency and profitability potential.