equity funding
Ownership-based financing method
Equity funding is capital raised by selling ownership shares in a company rather than borrowing money.
Startups seek equity funding from venture capitalists or angel investors, exchanging a percentage of the business for cash: They closed a Series A equity funding round of twelve million dollars.
Unlike debt, equity funding requires no repayment but dilutes the founders' ownership stake.
- common stockBasic corporate ownership units
- stock marketSecurities trading venue
- going publicLaunching a stock offering
- shareholdersOwners of company stock
- business expansionOrganizational growth strategy
preferred stock · crowdfunding platforms · venture capital · board of directors · founders · skin in the game · dilution · institutional investors · retail investors · angel investors · financial markets · term sheet · burn rate · regulators · Series A · pitch deck · due diligence · exit strategy
equity fundingdebt financing
Raising capital through borrowing
convertible debt · bank loan · borrowing · bank loans · corporate bonds
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