Growth financing, also known as growth capital, is capital for a company that wants to grow faster than its current cash flow and its principal bank allow. It finances, for example, new products, entry into new markets, an acquisition or the expansion of production.
It is usually raised in financing rounds. In an equity round, private equity firms or family offices acquire shares, often as a minority stake. In a debt round, growth loans, subordinated loans or bridge financing are added, which do not cost any shares. Every round is based on a robust business plan and a valuation of the company. This determines what share a provider of capital receives for its amount.
The Worstbrock-Group prepares financing rounds, approaches suitable providers of capital and supports due diligence and negotiation through to disbursement.
