It's a type of financing that investors provide to startup companies and small businesses with potential long-term growth.
- The growth can be in terms of the number of employees, annual revenue, the scale of operations, etc.
Generally comes from well-off investors, investment banks, and any other financial institutions.
It can be a monetary investment or in the form of technical or managerial expertise.
- In return, the companies give to investors equities or an ownership stake.