Key differences between working with PE-backed vs VC-backed companies

Dear Artemis,

I’m interviewing with a PE-backed company. I’ve always worked in VC-backed companies. What are some key differences I should be aware of?

Great question! PE-backed companies tend to be different in these ways:

• Larger, more mature organizations

• The tech company has proven product-market fit and reliable revenue

• Often more security and stability in the org’s growth, and access to capital

• Bigger focus on sustainable growth vs “growth at all costs”

• Bigger focus on maintaining healthy levels of spend

• More experienced leadership teams (and often non-founding executives)

• M&A is more likely, as PE firms typically are looking to increase valuation and eventually sell

• The PE firm typically has 100% ownership of the company

VC & PE backed orgs have similarities, too. Including:

• Both VC and PE investors often provide operational support

• Access to their talent network

• An evolutionary view of talent, ie wanting to keep great talent within portfolio companies

Until next time,

Negin & the Artemis team

Artemis Canada is a boutique executive search firm specializing in placing top talent in the tech sector across Canada, the United States, and Europe. Our team of experienced recruiters has a proven track record of finding exceptional candidates for a variety of roles, from C-suite positions to high-demand individual contributors.