
Growth Equity is a form of capital used to fund accelerated growth of a company. Generally it is structured as preferred stock with minority equity ownership. It has similarities to venture capital, but is generally provided to middle market sized companies that are undergoing high rates of organic growth and need external capital to scale up to meet market demand. Most purveyors of growth equity have evolved from either private equity funds or venture capital funds. They tend to focus on investing in rapidly growing companies in either a technology, fintech, Life sciences or healthcare space.