What's the difference between venture capital and private equity?

Venture capital is a subset of the larger private equity asset class. The private equity asset class includes venture capital, buyouts, and mezzanine investment activity. Venture capital focuses on investing in private, young, fast growing companies. Buy-out and mezzanine investing focus on investing in more mature companies. Venture capitalists also invest cash for equity. Unlike buy-out professionals, venture capitalists do not use leverage in their transactions.