This analysis by CB Insights show how growth equity financings reached a multi-year high in Q1 2014. The recent new funds by Spark Capital and Greycroft Partners reflects the increasing number of growth equty investments. Typically, companies raising a growth equity round are growing revenues rapidly and may be profitable or close to profitability. The growth capital raised is often used to increase both the growth rate of the company as well as enable potential M&A activity.
"After a tepid three quarters to end 2013, of which all fell under $500M in total funding, Q1 2014 exploded with more funding than any other quarter in the last 2 years. Last quarter saw nearly $1.2B invested globally across 52 growth equity deals, up 40% on a funding basis, and 16% on a deal basis. The 52 growth deals were also a multi-year high, while the large funding was driven by 7+ deals over $50M."
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