The NVCA views growth equity as a critical component of the venture capital industry. In recognition of this important segment of the financing continuum, the Growth Equity Group was formed in 2012. The Growth Equity Group focuses on engaging in political advocacy on behalf of growth investors, educating constituents across the entrepreneurial ecosystem and facilitating peer connections.
“1315 Capital is very excited to be joining the NVCA. As a growth equity firm focused exclusively on commercial stage healthcare companies, we invest behind high-quality management teams that scale companies into large and important businesses that positively impact patients, physicians, and the broader healthcare system. The NVCA not only provides additional networks that we can leverage for advisors, deal sourcing, and diligence, but allows us to stay active and current on policies that can have widespread impact on the healthcare and finance industries.” – Adele Oliva, 1315 Capital
Technology Crossover Ventures
Insight Venture Partners
- Recognition of Job Growth and Economic Benefit
- Tax Reform
- Capital Markets
- Regulatory Matters (Tick Size Pilot Program)
Engagement & Events
The Growth Equity Group holds biannual calls to review current and prospective policy issues, education priorities, and engagement opportunities. The group also meets biannually for in-person receptions where NVCA brings policymakers, thought leaders and academics to present on topical issues pertinent to growth equity.
November 2, 2016: Growth Equity Reception – New York, NY
NVCA will be hosting a reception and presentation the evening before the ILPA GP Summit on Wednesday, November 2nd in New York. Please join us to network with your growth equity peers and hear from keynote speaker Chris Campbell, Staff Director of the Senate Finance Committee. Chris will be one of the most important staffers in any major tax bill discussion and significant to our industry, and we are thrilled to have him join us.
March 9, 2017: Growth Equity Reception – Menlo Park, CA
Event details forthcoming.
Education & Resources
Defining Growth Equity Investments
In an effort to enhance understanding of the asset class, NVCA and the Growth Equity Group Executive Committee defined the key characteristics of growth equity investing. Most growth equity investments will have a number, if not all, of the following key characteristics:
- Company has a proven business model (established product and/or technology and existing customers);
- Company’s revenues are growing rapidly;
- Company is often cash flow positive, profitable or approaching profitability;
- Company is often founder-owned and / or managed;
- Investor is agnostic about control and purchases minority ownership positions more often than not;
- Industry investment mix is similar to that of earlier stage Venture Capital investors;
- Capital is used for company needs or shareholder liquidity;
- Additional financing rounds are not usually expected until exit;
- Investments are often unlevered or use light leverage at purchase;
- Investment returns are primarily a function of growth, not leverage, with a lower expected loss ratio than Venture Capital portfolios.