Growth capital refers to a type of funding that is provided to a company to help it grow and expand its operations. This type of funding is typically provided to companies that have already established a track record of success and are looking to take their business to the next level.
Growth capital can take many different forms, including equity financing, debt financing, and mezzanine financing. Equity financing involves selling shares of the company to investors in exchange for funding, while debt financing involves borrowing money that will need to be repaid with interest over time. Mezzanine financing is a hybrid of the two, and typically involves a combination of equity and debt financing.
Growth capital can be used for a wide range of purposes, including expanding a company's operations, investing in research and development, acquiring new businesses or technologies, and hiring new employees. Companies that receive growth capital typically have a strong track record of success and a clear plan for how they intend to use the funding to continue growing and expanding their business.
Overall, growth capital is an important tool for companies that are looking to take their business to the next level. Whether through equity, debt, or mezzanine financing, growth capital can provide the funding needed to drive growth, expand operations, and achieve long-term success.
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