Mid Stage/Expansion

Expansion capital is exactly what it sounds like: funds used to help support the private company’s growth. This may mean helping the company acquire more servers to support traffic to its website, increasing the private company’s marketing budget, acquiring or building more factories, launching new products, etc. Expansion capital can come from VC and PE firms but since the private company has profited at this stage, it may not want to give up the equity necessary for taking VC money and will instead turn to other financing methods like debt or mezzanine financing.