The platform / Growth capital
Growth capital structure.
Minority equity, tranched against operating milestones, structured to preserve founder control.
How capital is deployed
Capital is deployed as minority equity. Tranches are sized against operating milestones the founder helps define - typically a combination of revenue thresholds, gross-margin improvements, and product-delivery checkpoints. Average initial cheque sizes are confidential, but the structure is uniform: founder-friendly, anti-dilution-light, with no liquidation preference stacked above 1× non-participating.
What we negotiate, what we accept
- Liquidation preference: 1× non-participating, no exceptions. Anything stacked above this - 1.5×, 2×, participating, cumulative dividends accruing into liquidation - is a flag we will not raise.
- Anti-dilution: broad-based weighted average. Full ratchet is refused.
- Pro-rata rights: standard pro-rata for subsequent rounds. No super-pro-rata.
- Board composition: proportionate to ownership share. Minority economics, minority governance.
- Information rights: quarterly financials, annual audit, monthly KPI dashboard. Reasonable, not invasive.
- Drag-along: reasonable in growth-stage transactions; thresholds and floor returns negotiated transparently.
What we will not do
- We do not lead syndicates that include capital-only growth funds. We either provide the operating capacity or we step aside.
- We do not pursue control transactions. Majority recapitalisations are explicitly out of scope.
- We do not write seed cheques. Other vehicles in the Gateway Group ecosystem may participate; TGC Capital Partners does not.