Growth Equity Explained: The Secret to Scaling Without Selling Out
Summary
Bootstrapped businesses don’t have to sell their soul to raise capital. Drew Sanocki breaks down growth equity—how it works, why it’s a top-performing investment category, and how it helped PostPilot scale while staying profitable.
Transcript
You know, we enjoyed the bootstrapping part. We wrote it up to a certain, the company up to a certain level. And then, you know, essentially we wanted to bring on an investor partner, and the business was still profitable and cash flowing and growing. But we found this category of investor called growth equity. And, growth equity is really interesting.
They look for profitable, growing businesses. They take a minority or sometimes majority share. And you know, their goal is to get in and, and sort of ride the growth and exit at a later, you know, add value and then, ultimately exit. So it was really interesting category. And, when you look at the universe of returns across private equity and venture, a growth equity is an amazing category.
I think it's one of the one of, if not the top performing category in that world of investing.