I think it's fair to say that buyout funds and venture capital funds can both be lumped under the rubric of private equity firms, which can in turn be lumped under alternative investments. But VC funds these days would like a little separation from their siblings. The issue has to do with the Senate's idea (not yet a firm proposal) to tax the carry of private equity firms as income not capital gains. That would really cut into profits. To hear the VC guys tell it, they are completely different animals, with different goals and business models. Would it be unfair to change taxes for one and not the other? Good question. This is the challenge facing the lawmakers. Very tricky to say the least.

For more:
- here's the Fortune article