If you’re a fractional leader parachuting into start-ups across UK and Europe, you’ve likely seen it firsthand: great teams with solid products, happy customers and respectable revenues, but growth has slowed, funding has dried up and venture capitalists are shifting their attention to the next moonshot.
These are what Resurge Growth Partners (the venture equity partner for high-potential companies that have reached the end of the VC road) call VC graduates — start-ups that no longer fit the venture capital playbook, but aren’t quite mature or profitable enough to attract traditional private equity.
This is the gap venture equity was designed to fill.
What Is Venture Equity?
Venture equity is a new class of capital bridging the funding gap between VC and PE. It’s specifically built for companies with:
- €8M+ in annual revenue; -€3m to +€3m EBITDA
- An established product-market fit
- Slower, more strategic growth trajectories (30-50% YoY instead of 3x-3x-3x-2x-2x)
- Cluttered, inefficient or complex cap table that is bringing diminishing equity value
- Venture Debt with interest-free holidays ending / repayments looming
- Raised too much capital, requiring a valuation reset
- Brilliant business model enabled by tech, but struggling to unlock its value
- On the path to profitability / can grow profitably with fresh capital
Rather than swinging for unicorns, venture equity firms like Resurge aim to transform good companies into great, profitable businesses over a 4-5 year horizon. They take minority or (joint) controlling stakes, often alongside existing investors or founders, and roll up their sleeves operationally to help teams deliver on sustainable growth.
Why It Matters to You as a Fractional Leader
If you’re embedded in a start-up or on an interim stint, you might be the first to sense when something’s off:
- Burn has been slashed, but now growth has slowed and you may no longer be attractive to VC
- The founders are demotivated, their equity is underwater (under a pref-stack)
- The cap table is fractured and confusing; you’re getting mixed messages from your board on which strategic priorities to focus
- Venture debt is looming, resulting in short-term decisions that could harm the company’s future growth prospects
- The team’s chasing profitability, but lacks the experience, resources or capital flexibility to get there
These are the kinds of companies Resurge works with, and fractional leaders are often the best allies in identifying when it’s time for a capital transition.
Who Should Consider Venture Equity?
Here are some situations where Resurge might be a fit:
- Founders who’ve built a €8M+ revenue business with great customers, but are stuck between needing more capital and not qualifying for another VC round
- VCs or boards with companies they still believe in but can’t justify doubling down on
- Operators frustrated by cap table chaos, lack of strategic clarity, or unproductive investor relationships
- Businesses facing venture debt repayments they can’t comfortably service — and no clear path to refinance
A Call to Fractional Leaders
Whether you’re currently in an interim role or advising from the sidelines, if you’re seeing a start-up with a strong foundation but stuck in funding limbo, Resurge would love to chat.
They’re not just writing cheques — they’re active partners with decades of transformation experience across both VC and PE. Their goal is simple: help overlooked start-ups graduate from venture limbo to profitable, strategic businesses.
🔗 Know a company that might be fit for Venture Equity? Reach out to matt@resurgegrowth.com or visit resurgegrowth.com.
