The default path leads to venture capital: 2-and-20, 10-year terms, 10x return targets. But many emerging managers see opportunity in growth companies that create substantial value without fitting the venture model. Alternative fund structures can serve this market and generate competitive LP returns.

Count your last five cohorts. The companies that grew steadily to $5 million in revenue without raising a Series A probably outnumber the ones that did. Accelerators adding investment capability need fund structures designed for growth companies, not venture-only approaches that serve a minority of graduates.

University spinouts cluster into distinct categories. Some are venture-backable. Many are growth companies that will reach $15 million in revenue without ever raising a Series A. Innovation offices need investment structures designed for the companies they actually produce, not the ones venture funds want to see.

Regional growth companies need capital structures designed for steady expansion, not venture-scale exits. A practical guide for economic development organizations building investment programs.