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by Undo Capital
December 15, 2025
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What are Growth Shares?

Growth shares are a special class of shares designed to benefit only from the future increase in a company’s value, above a set hurdle price.

Growth Shares Meaning

The growth shares' meaning centres on incentivising future performance without giving away existing value. To define growth shares in practice, they only participate in company value once a predefined threshold, often today’s valuation plus a return hurdle, is exceeded. A clear growth shares definition makes them especially popular for employee incentives, management rewards, and founder restructuring, where existing shareholders want to protect current value. Unlike ordinary shares, growth shares carry limited downside but significant upside if the company performs well. Growth shares stand for targeted motivation aligned purely with future growth.

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Disclaimer: Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. We do not provide investment advice, financial advice, or tax advice, nor are we regulated by the Financial Conduct Authority (FCA). Participating in startups and early-stage enterprises carries inherent risks, including limited liquidity, absence of dividends, potential loss of investment, and dilution. Any decisions regarding investments should be made independently by the investor as part of a well-diversified portfolio.