There are many reasons why businesses need Growth Capital. The most common reason is to finance the acquisition of new customers or assets. Growth capital can also be used to support the expansion of an existing business, reduce working capital needs, or help a company weather a temporary financial setback.
Growth equity firms provide investors with the opportunity to participate in the growth of a company. They provide capital and technical expertise that help companies achieve their desired growth trajectory. Growth equity firms typically offer a higher percentage of ownership in the company than other types of venture capital, which allows them to have more influence over decision-making. This type of investment is also riskier, but can be rewarding if the investment is successful.