Once a company goes public and the price of its shares go up I guess some investment firms can make money that way. But how do investment firms that invest in non-public companies (e.g. small startups) make money? Do they just keep on investing until the company goes public and they can reap profits (through stock prices etc.)?
In: Economics
Private companies have stock too, which is held by the owners. So, VC firms / angel investors will take a percentage of ownership, proportionate to the amount of investment & risk. As the company makes money so do the investment firms.
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