Growth equity is focused on the space between venture capital and traditional private equity. Investments are made often as a large minority stake into companies at earlier stages with proven product/market fit, that are unprofitable or structurally profitable. Compared to venture capital, there are lower potential losses in growth equity, as companies already have a strong customer base and positive unit economics, and are more focused on expansion, either regionally or within the business itself. Private equity firms often target growth companies in more nascent markets, as the companies are looking to accelerate growth and establish themselves as market leaders. Despite its position between two more well-known asset classes, growth equity has successfully carved out a space of its own.