growth-stage-investment

Vocabulary Word

Definition

'Growth stage investment' happens when investors give money to a company that's already successful, to help it grow even more. It's similar to planting a tree - it's already grown from a seed, but needs extra care to bear fruit.

Examples in Different Contexts

In private equity, 'growth-stage investment' involves funding more established companies to accelerate growth. A private equity investor might explain, 'Our growth-stage investment strategy is to partner with companies that have proven business models and are ready for the next level of growth.'

Practice Scenarios

Tech

Scenario:

The software we developed has a considerable user base and a positive revenue trend. Scaling up seems like a good idea.

Response:

Yes, a growth stage investment could help us to improve server infrastructure and handle more users.

Public-Policy

Scenario:

Our city infrastructure projects have been progressing well and we have a strong case for attracting more international funding.

Response:

Absolutely, attracting growth stage investment could drastically accelerate our infrastructure development plans.