Business Pitch Dictionary by pitch.dog
Investor & fund types · Working

Growth equity

Also called: growth capital

ELI5

Investment in companies that already have substantial growth and evidence.

Used in conversation

“The growth-equity investor expects predictable unit economics.”

Definition

Minority or control investment in established, rapidly growing companies, generally with lower product-market uncertainty than venture capital.

Here “Growth equity” means: Minority or control investment in established, rapidly growing companies, generally with lower product-market uncertainty than venture capital.

Pitch context

You will see “Growth equity” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches investor & fund types.

Why it matters: In investor & fund types, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 6

Direct term-level sources and supporting source families.