The philosophical distinction between PE and VC helps explain why Wall Street investment bankers often make terrible venture capitalists, and vice versa.

FORBES: What's the Difference Between Private Equity and Venture Capital?

Venture capitalists have been using the carried interest concept since the modern VC industry arose in the 1960s.

FORBES: An Insider Perspective On Carried Interest

If a corporate investor intends to acquire a company, its valuation expectations will be different from that of traditional venture capitalists who want to maximize their investment, said Paul Lee of Lightbank, an early stage VC firm in Chicago.

FORBES: Corporate Venture Funds Increasingly Important To Startups