How do you make money off private company investments??

hey saw your posts and think you know a bit about PE and wanted to see if you could help me on a few questions i had about private placements / investments in private companies?

who typically sets the valuation for the capital raise? I realize the company will often use a bank to run the process and they will pitch you on a potential valuation but do companies typically accept this valuation or is there some back and forth? Once a valuation is set, by the lead investor/company/bank, do all other investors come in at the same valuation or do they go back and forth as well?
is the company valued the traditional way for private placement investments and then some sort of illiquidity discount is given (say ~30% to agreed upon current value of the company) for their investment? Otherwise, how do the PE and VC make money? Are they betting on future growth by the time IPO hits? How is this growth not priced into the current valuation?

Thanks

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How do you make money off private company investments??

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