Growth Equity

Investment funding provided to established companies to accelerate expansion, enter new markets, develop products, or make acquisitions. Growth capital sits between venture capital (higher risk, earlier stage) and traditional private equity (mature businesses, often leveraged).

Investment capital provided to companies that are not listed on a public stock exchange, or used to take public companies private. PE firms typically acquire controlling stakes in mature businesses, apply operational improvements, and seek exits within 3-7 years.

The ownership stake held by a company's founders, typically established at incorporation and subject to dilution through subsequent funding rounds. Founders' equity is usually subject to vesting schedules and may carry different rights from investor shares, reflecting the intangible contribution of the founding team's vision and early-stage effort.

The percentage change in a metric from one year to the next, used to assess trends while neutralising seasonal effects. YoY growth rates in revenue, productivity, and intangible asset investment are fundamental to performance evaluation, valuation modelling, and growth accounting analysis.

The process of projecting a company's future growth trajectory based on historical data, market conditions, and investment patterns. Incorporating intangible asset data and productivity trends significantly improves forecast accuracy and reduces investor uncertainty.

The simplest version of a product that can be released to early adopters to validate core assumptions and gather feedback with minimal development investment. The MVP concept, popularised by Eric Ries in The Lean Startup, enables founders to test product-market fit iteratively before committing significant capital to full product development.

Sequential rounds of venture capital financing that follow the seed stage. Series A typically funds scaling after product-market fit; Series B accelerates growth and market expansion; Series C and beyond fund further scaling, internationalisation, or pre-IPO preparation.

A decline in the expected rate of return on an asset class or investment, typically driven by increased demand, lower interest rates, or excess capital supply. Yield compression in private markets can inflate the implied valuations of intangible-heavy businesses, requiring investors to scrutinise whether premium multiples are supported by genuine intangible asset quality.

How do you measure brand value?

Brand value is most commonly measured using the Relief from Royalty method, which estimates what the business would pay to licence its brand if it didn't own it, discounted to present value.

How can intangible assets drive revenue growth?

Intangible assets drive growth through brand premium pricing, customer retention, technology differentiation, proprietary data advantages, and scalable IP licensing — all generating returns without proportional capital expenditure.

How do you value a brand and what factors drive brand worth?

Brand value is driven by pricing premium, customer loyalty, and market position. Valuation methods include comparable company analysis, price premium multipliers, and income approach based on branded revenue.