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 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 to develop an idea, create a prototype, or conduct market research. 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. Focuses on companies with a proven concept and some revenue generation.

Growth Stage: Series C and beyond, aimed at scaling up, entering new markets, and achieving profitability. 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 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 showing product-market fit and adoption.
Gross Margin: The difference between revenue and cost of goods sold, indicating financial efficiency and profitability potential.