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The private markets, which encompass venture capital and private equity, control more than a quarter of the U.S. economy by capital, and 98 percent by number of companies. They also have the potential to be a significant source of revenue for service and product vendors.

Here’s how.

The opportunity for honing your business development strategy

In the private markets, fast-growing companies that aren’t publicly traded give professional investors equity in exchange for the funding and mentoring they need to grow. These investors include venture capital firms, which invest in young companies (startups), and private equity firms, which invest in more established companies. 

These private companies regularly undergo mergers, make acquisitions, and navigate other complex organizational changes—all events that indicate a need for new vendors, ranging from marketing automation software providers to office furniture suppliers and insurance companies. 

With a detailed understanding of these private market activities, business development and sales teams can unlock a powerful, efficient way to discover and win new business.

Startup funding and the private market landscape

As capital flows through the private markets, it moves from entity to entity through a series of financial transactions. From seed funding for startups all the way to IPOs and beyond, each exchange can be important in informing your business development ideas. Every time capital changes hands or private companies use investment capital to grow, professional service providers advise on or execute the transaction. 
 
Hover or click on the map to see where service or product vendors can enter the process.
   

Key business development goals and drivers

Every year, tens of thousands of deals involving VC or PE financing, and mergers and acquisitions are completed in the United States. Seeing where and when these deals are happening, which startups and firms are involved and having access to contact information for top professionals can make a significant difference to your biz dev efforts.

Countless vendors have won—and will continue to win—business in this fast-growing financial sector through these proven strategies:  
 
Tracking where venture capital and private equity firms are investing to identify new industries, territories and accounts to pursue.
Tracking when companies get funding, because that’s when they’re growing, have capital to spend and need new products or services as they expand.
Getting in early with promising startups and working with them at every stage of their growth.
Follow transactions like mergers, acquisitions and infusions of debt to anticipate when companies will undergo significant changes—such as management restructuring, relocation or expansion—and pursuing those opportunities.

If you’d like to learn more about the private markets and how your company could benefit from pursuing new clients in the space, download our private markets guide.
 

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