Equity financing
Equity financing is acquired from personal money of the business owner or from other investors, such as shareholders of the corporation.
Investors that provide equity funding to your business will receive a share in the ownership of your business and in your profits in return for their contribution.
Equity funds are usually unsecured. This means that the investor does not have a claim on any of the assets of the business. You are still free to use your assets as leverage when trying to obtain debt financing. A combination of equity and debt financing might provide access to a larger pool of money.
Venture capitalists
A venture capitalist provides investment capital for a business venture and usually takes an equity position in the firm.
Angel investors
Angel investors are a type of venture capitalist who typically invest in small businesses and start-ups.
Business incubators
Business incubators provide support to young companies until they are established.
Initial public offering
An initial public offering (IPO) is the process of listing your business on a stock exchange.
Date Updated:
RDP-1689
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