Who receives the use of proceeds?

Hi,

Might be a silly question but just need some clarification.

Say you start up your own company, it’s private and you own 100%. It’s doing well and you need capital for growth and investors express interest. What happens under the following two scenarios:

a) you do a private placement I.e a private equity fund invests $10 million into the company and in turn receives a 20% stake.

b) you sell the entire 100% business for $50 million and remain on as management

Under both a) and b) where do the use of proceeds go, considering you own 100% of the business would the net proceeds of $10 million under a) go straight into the person who started the business/owner’s pocket? Or would it go into the business itself? And under b) would the $50 million go into the business or would it go into the person who started the business/previous owner’s pocket?

from what I understand the money would go into the business to expand growth as in most the announcements I’ve seen it always says something like the use of proceeds will be used to accelerate growth etc.. but then why does it not go into the managements pockets considering they had owned 100% of the business and sold their stake ?

Thanks