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.

Related

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

Opposites
capital structure type

equity fundingdebt financing

Raising capital through borrowing

convertible debt · bank loan · borrowing · bank loans · corporate bonds

funding source

equity fundingbootstrapping

Self-starting without external input

retained earnings · organic growth · self-funding

Family

equity, funding, equities, equitable, equitably, inequity, inequitable, fund, funds

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Top 500,000
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