The difference between private equity and the venture capitalist are:

1. The private equity firm concentrates on investing in companies that are already established. On the other hand, the venture capitalist focuses on new and developing companies.
2. Private equity firms prefer investing in investment that offers low returns but less risky. On the other hand, venture capitalist prefers investments that have high returns which have more risks.
3. In the private equity firm's investment, leverage is used. This means that there is cash outflow that is required to facilitate the investment. Contrary, in the venture capital only equity is involved.