Growth capital refers to funds that are invested in a company to help it expand or restructure operations, enter new markets, or finance a significant acquisition. This type of investment is typically sought by established companies that are looking to grow but may not have sufficient cash flow or access to traditional financing options. Investors providing growth capital often receive equity stakes in the company, allowing them to share in its future success. Unlike venture capital, which is usually aimed at startups, growth capital targets businesses that are already generating revenue and have a proven business model, making it a less risky investment.