Why Private Equity Is Outpacing Venture Capital (And How It Affects CEOs)

Venture capital used to be the golden ticket.

I watched dozens of founders chase VC money like it was oxygen in 2021.

Their pitch decks screamed "unicorn potential!" while VCs nodded along, writing checks faster than baristas make lattes.

Then inflation hit, interest rates jumped, and the entire game changed.

When the cost of money was free, the VC model worked great.

The party was over.

Now private equity is king.

And CEOs who don’t adjust are going to get left behind.

Speaking of getting left behind, check out Stop Budgeting Like It’s 1999.

Why Private Equity Is Beating VC at Its Own Game

• VCs rely on free money. That era is over.

• PE firms are sitting on mountains of cash and are deploying it faster than ever - buying profitable companies, not speculative bets.

• PE expects performance, not just potential. They don’t want vision. They want EBITDA.

• VCs built companies from scratch. PE buys existing companies and works to leverage what they already do well.

What This Means for CEOs

If you’re still operating like a venture-backed founder - burning cash and talking about your “next round”- you’re not ready for what comes next.

PE-backed companies require a different kind of leadership:

1. Discipline Over Hype
You can’t sell a story to private equity.

They want results:

• Tight operations

• Clean financials

• Clear ROI

If your metrics don’t hold up under scrutiny, the deal’s dead.

2. Focus on Operational Rigor
PE firms don’t want to fund chaos.

They want CEOs who can scale without bleeding.

That means systematizing processes, installing accountable leadership, and driving measurable outcomes.

3. Know Your Exit Before You Start
VCs ask, “What’s your vision?”

PE asks, “What’s your exit plan?”

If you can’t clearly articulate how you’ll deliver a return, and on what timeline, you’re not getting funded.

If you’re a founder and not leading to the best of your abilities, I can help you. You need to discover your Genius Talent. Let’s chat.

The Best CEOs Are Shifting With the Market

This isn’t about which model is “better.”

It’s about recognizing where capital is flowing and leading accordingly.

There’s a wise saying: “Money goes to where it’s needed most, and stays where it is treated best.”

What's your north star metric today? If it's not tied to profitable unit economics, you might be fighting yesterday's war.

When you’re ready to discover your genius, here’s how I can help you:

1. Genius Talent Discovery. Are you ready to discover your hidden superpower? Join today and embark on a transformative journey.

2. 1:1 CEO Coaching. Schedule a no obligation first session to find your superpower, connect with your highest ROI activities, and succeed with less effort and stress.

3. 3:1 CEO Coaching. Embark on a transformative journey toward realizing your limitless capabilities, partnering with two other CEOs. Learn and grow together.

Go forth and scale,

— John Hittler