Stage 5: Growth equity
Venture capital (VC)
Venture capital funds invest larger amounts in high-growth companies in exchange for meaningful equity, expecting a large return through a later sale or listing.
Best suited for
Scalable businesses, often technology, aiming for rapid growth and a large market.
Pros
- Larger cheques and follow-on funding
- Strategic help, hiring and introductions
- Credibility for customers and later investors
Cons
- Significant dilution and investor control rights
- Pressure to grow fast and exit
- Most businesses are not a fit for VC
Watch out for
Know whether the fund invests at your stage and sector, and understand term-sheet terms such as liquidation preference.
Where to look: Venture capital & private equity
Real-world examples
- Cradle and Grab
Cradle’s CEO has cited Grab as an example: funded by Cradle in 2010 and grown from prototype to unicorn in about five years.
Reported by: Vulcan Post / Cradle (opens in new tab)
Examples are drawn from public reports and are not endorsements. Results vary and are not typical.
Related options
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