Growth companies: The best investments for 2025
2025 is shaping up to be a promising year for attractive investments in growth companies. Discover why investing in scale-ups before they go public can be more valuable than ever and where to invest your money to get good returns.
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When and where to invest to your money
When many investors sell company shares due to the economic or political situation, the prices fall – and thus offer others a favourable entry opportunity. This is known as an anti-cyclical investment.
Countercyclical value investing is a popular strategy among long-term investors that allows them to profit from stocks or bonds that are undervalued due to market dislocations. In this way, investors capitalise on the fact that financial instruments are often oversold in bad times and therefore undervalued relative to their substance. As soon as market conditions improve, their prices should rise again, the idea goes.
Mari Lymysalo, Managing Director at Invesdor Nordics highlights: “The competition among investors for investments in start-ups and growth companies is significantly lower than before. That’s why growth companies in particular have fallen significantly in valuation due to the lack of venture capital.”
This scenario applies to many growth companies and opens enormous opportunities for investors in the areas of equity investments, venture capital and participation in growth companies in the upcoming year.
The hidden opportunities of private equity, venture capital and growth company investments
There are winners in every market phase. Even in crises or recessions, these can be successful start-ups or growth companies with a forward-looking business model and a well-thought-out business plan. These companies are also called growth companies.
“Selected growth companies offer investors excellent opportunities when it comes to investing in companies with attractive returns – this is where the expertise of specialists who know the markets and act professionally when it comes to selecting suitable growth companies for investment is needed,” explains Mari Lymysalo from Invesdor.
Invesdor always provides you with expertise for growth companies and venture capital. With us, you will only find pre-selected investments in which you can already get involved with smaller amounts.“
Participation in growth companies usually takes the form of venture capital or private equity investment. In both forms, the investors invest in the equity capital and thus obtain ownership shares in the growth company. Both forms of investment take place before the target company is listed on the stock exchange and thus share or bond investments on the stock exchange are not yet possible. They differ above all in the investment horizon and the investment structure. The goal of private equity investors is the exit through an IPO or the profitable sale of the company.
Growth companies have successfully mastered their start-up phase and are pursuing a forward-looking strategy with qualified management. However, these companies do not yet generate excessive profits with which they could finance further growth. They are dependent on financiers. Since banks continue to be reluctant to lend, the main option for growth companies is the participation of venture capital or private equity investors.
“Investments in this area are usually only accessible to institutional investors, especially since the minimum investment amount often exceeds the budget of private investors. However, Invesdor makes it possible to bundle the investments of interested investors and thus also transfer shares in growth companies to private individuals,” says Mari Lymysalo.
For investments in growth companies, we at Invesdor are at your side to finance additional growth or to open up new markets. These growth companies offer excellent opportunities – but also risks that need to be calculated precisely. Our experts analyse the potential success of the growth companies. A growth company will be included in our project portfolio only if this assessment is positive.
Why growth companies are proven to be the best investments for 2025
The effects of numerous conflicts have marked the past years. Triggered by the energy crisis and the lack of supplies from Eastern Europe, Russia and the Middle East, fossil fuels and electricity prices rose sharply. Worldwide supply chains were interrupted or at least significantly restricted. This led to sharp price increases in all areas and thus high inflation.
In order to curb inflation, the central banks raised interest rates several times. The rising interest rates in turn led to a slump in the stock markets, which were only able to recover over the year partially. But the market’s overall momentum has slowed.
Mari Lymysalo, Managing Director at Invesdor Nordics explains it as: “The value of growth companies is based on future expectations. The value of these future cash flows decreases as interest rates rise. In the changed market environment, the valuation views of venture capitalists and growth companies have diverged, and it has taken some time for them to align,” says the venture capital investment expert.
Mari Lymysalo’s tips for investing in growth companies at a glance:
- Define investment objectives
- Spread across different asset classes and also within an asset class
- Exploiting the opportunities of crowdfunding
- Finding the right mix: a good business model with growth prospects
- Be well-informed and make well-considered decisions
Why invest with us?
The Invesdor Group has been active in the market for over 10 years and is at home in many European countries. Since then, we have become one of the largest financing and investment platforms on our continent.
To date, more than 194,000 investors have invested over 550 million euros in European companies in more than 1000 projects. Fairness, collaboration and agility are the pillars of our corporate culture. In the areas of crowdinvesting and crowdlending, investors can participate in forward-looking companies with smaller amounts.
As an awarded and innovative platform for crowdinvesting, our company is represented in five core countries in Europe. The focus is particularly on industries that deal with climate change and people’s health. With venture capital, we support these future industries and thus offer our clientele attractive entry opportunities. Private investors thus have the option of directly participating in growth companies that are not traded on any stock exchange.
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