What is growth-stage investing?

Growth-stage investing backs companies with proven models and substantial revenue, writing large checks (tens to hundreds of millions) for minority stakes ahead of an IPO or sale. Underwriting resembles public-market analysis — financials, cohorts, market position — more than venture's team-and-vision bets.

Growth investors include dedicated growth funds, the growth arms of venture firms, private equity, and crossover funds. Losses are rarer than in early venture and returns correspondingly more modest per deal.