Sorry for the n00b question, but can someone explain the distinction between PE investor & angel/VC? Is angel/VC a subset of PE investor?
angels/VCs fund growing companies and extract profits as the company value grows and is to sold to a company or the public market. A VC would never fund a paper manufacturing company unless this were a wholly new way of making paper and had potential to transform the entire industry.
The stuff in there about how earnouts are structured seems germane. I have friends who have sold tech startups where earnout structure was a material issue.