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and as such growth capital is provided by a variety of sources. The types of investors that provide growth capital to companies span a variety of both equity and debt sources, including private equity and late-stage venture capital funds,
56:
funded companies, able to generate revenue and profit but unable to generate sufficient cash to fund major expansions, acquisitions or other investments. Because of this lack of scale, these companies generally can find few
87:
that include a contractual return (i.e., interest payments) in addition to an ownership interest in the company. Often, companies that seek growth capital investments are not good candidates to borrow additional
49:, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.
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to secure capital for growth, so access to growth equity can be critical to pursue necessary facility expansion, sales and marketing initiatives, equipment purchases, and
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Companies that seek growth capital will often do so to finance a transformational event in their lifecycle. These companies are likely to be more mature than
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Capital is used for company needs or shareholder liquidity and additional financing rounds are not usually expected until exit.
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Growth capital can also be used to effect a restructuring of a company's balance sheet, particularly to reduce the amount of
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or where competition to fund startup businesses is intense, growth capital becomes an attractive alternative.
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Growth equity investments, as defined by the
National Venture Capital Association, feature the following:
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92:, either because of the stability of the company's earnings or because of its existing debt levels.
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199:"With Growth Equity Outperforming Venture Capital, Cambridge Associates Anoints It an Asset Class"
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Investor is agnostic about control and purchases minority ownership positions more often than not.
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Bridging the finance gap: next steps in improving access to growth capital for small businesses
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117:, and mezzanine funds. Growth capital investments are also made by more traditional
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Company may be founder-owned and often has no prior institutional investment.
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Industry investment mix is similar to that of venture capital investors.
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Company is cash flow positive, profitable or approaching profitability.
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Investment returns are primarily a function of growth, not leverage.
121:. Particularly in markets where debt is less available to finance
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Investments are unlevered or use light leverage at purchase.
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216:"Market Commentary: Growth Equity Is All Grown Up"
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100:Growth capital resides at the intersection of
83:, although certain investors will use various
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803:Private equity and venture capital investors
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818:
775:Taxation of private equity and hedge funds
592:Private investment in public equity (PIPE)
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294:
281:"What is Growth Capital?", Industry Canada
260:. National Venture Capital Association.
246:. National Venture Capital Association.
137:Company's revenues are growing rapidly.
113:, sovereign wealth funds, hedge funds,
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79:Growth capital is often structured as
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214:Peter Mooradian and Andrea Auerbach,
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115:Business Development Companies (BDC)
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27:Type of private equity investment
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575:Publicly traded private equity
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843:List of venture capital firms
277:. HM Treasury, December 2003.
232:GROWTH CAP INVESTOR TARGETING
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823:List of private equity firms
580:Business Development Company
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667:High-net-worth individuals
457:Leveraged recapitalization
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555:Limited liability company
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515:Venture capital financing
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462:Dividend recapitalization
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258:"Growth Equity Companies"
622:Institutional investors
203:The Wall Street Journal
72:the company has on its
63:new product development
760:Liquidation preference
725:Distribution waterfall
677:Sovereign wealth funds
45:investment, usually a
833:Venture capital firms
585:Venture capital trust
813:Private equity firms
541:Private equity firms
490:Post-money valuation
367:Equity co-investment
220:Cambridge Associates
59:alternative conduits
863:Portfolio companies
780:Undercapitalization
632:Insurance companies
550:Limited partnership
495:Pre-money valuation
715:Capital commitment
485:Business incubator
452:Buy–sell agreement
129:Investing approach
70:leverage (or debt)
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720:Capital structure
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447:Divisional buyout
442:Management buyout
437:Financial sponsor
174:Mezzanine capital
123:leveraged buyouts
85:hybrid securities
47:minority interest
35:expansion capital
16:(Redirected from
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244:"Growth Equity"
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385:Early history
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39:growth equity
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33:(also called
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18:Growth equity
785:Vintage year
710:Capital call
682:Crowdfunding
617:Corporations
520:Venture debt
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119:buyout firms
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647:Foundations
570:Pledge fund
362:Secondaries
222:, June 2013
878:Categories
735:Envy ratio
642:Endowments
505:Seed money
419:Terms and
185:References
705:Cap table
610:Investors
534:Structure
352:Mezzanine
340:Leveraged
96:Providers
755:Leverage
691:Related
421:concepts
163:See also
765:M&A
472:Venture
377:History
347:Venture
730:EBITDA
429:Buyout
357:Growth
335:Buyout
545:funds
410:2020s
405:2010s
400:2000s
395:1990s
390:1980s
597:SPAC
543:and
500:SAFE
319:and
104:and
90:debt
37:and
770:PME
750:IRR
745:IPO
700:AUM
880::
218:,
201:,
76:.
65:.
309:e
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20:)
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