Explain the distinguishing traits of venture deals and of growth equity deals

Venture capital takes minority stakes in young companies and releases money in stages, with each round tied to milestones. It usually buys convertible preferred shares carrying liquidation preferences, anti-dilution protection and board or veto rights. Returns follow a power law: most deals return little or nothing and a few outliers drive the fund. Growth equity backs companies with proven business models and meaningful, often profitable, revenue that need capital to expand, acquire or let founders realise some value. Stakes are usually minority with little leverage and preferred-share protections. Risk is lower than in venture because product and market risk are largely resolved. The trap is treating growth equity like a buyout: without control, value depends on influence and contract terms.