Menu
Home
Advertise
Forums
Search forums
What's new
Unread posts
Latest activity
Earn Money
Review Website/Apps
Passive Income
Money apps
Paid Survey
Stock
Forex
Real estate
Paid to write
Social Media Monetization
Crytocurrency
Bitcoin (BTC)
Ethereum (ETH)
Crypto Exchange
Mining
Crypto Faucet / Airdrops
Binance
Business
Business strategy
Funding a business
Marketing
Digital Marketing
Social media marketing
Email marketing
Brand management
Personal Finance
Money Saving
Personal loan
Retirement
Debt help
Savings for Students
Tax relief
Insurance
Car Insurance
Life Insurance
Liability Insurance
Home Insurance
Health Insurance
Disability Insurance
FAQ
Log in
Register
What's new
Search
Search
Search titles only
By:
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Money Making Forums
Make Money Online
Stock
Sources of Equity Capital For Startups
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
[QUOTE="Faith B, post: 227169, member: 11591"] [JUSTIFY][B]There are three main sources of equity funding for startups; 1.[/B] Angel investors invest their money in startups with the expectation of a higher return. [B]2.[/B] Crowdfunding sites allow companies to crowdfund their way to funding. [B]3. [/B]Venture capital firms also invest in startups. Listed companies can take advantage of these methods to raise finance. [B]Two of the most common equity capital[/B][/JUSTIFY] [LIST] [*][JUSTIFY]Private equity funds and[/JUSTIFY] [*][JUSTIFY]public stock offerings [/JUSTIFY] [/LIST] [JUSTIFY]There are several private sources of equity financing for startups.[/JUSTIFY] [LIST] [*][JUSTIFY]The first is friends and family. You can also look to angel investors to fund your business.[/JUSTIFY] [*][JUSTIFY]Another option is an initial public offering (IPO). An IPO is a way for a private company to raise money by selling its stock to the public. Although this type of financing can be costly, it is a great way to secure the funds that you need.[/JUSTIFY] [*][JUSTIFY]Other sources of equity financing include investors.[/JUSTIFY] [/LIST] [JUSTIFY]Some companies choose to raise capital this way because the process is tax-free, and it also benefits employees. This method is particularly useful for small businesses, as it allows them to raise funds without requiring repayment. However, this is not the best option for early-stage businesses. As a result, it may not be possible for every startup to secure private funding. Private investors can also be an excellent source of equity financing. A number of venture capital networks and computer databases have been set up to connect entrepreneurs to potential investors. Government sources of equity financing are available for startups. For instance, the SBA and various state governments offer loans and grants to help small businesses expand. A small business can apply for a SSBO, or Small Business Investment Corporation, which is a privately owned investment company chartered by a state. SBIs invest in businesses that meet certain requirements. In addition to private investors, entrepreneurs can also access government sources of equity financing. Some government programs are specifically set up to help small businesses raise funds. Often, the best source of equity funding is a combination of debt and equity. If a company has a good idea, they are more likely to receive outside investment. Besides private investors, government agencies can provide grant money to startup companies. And if equity funds are not enough, there are also a variety of hybrid forms of financing. [B]There are three primary sources [/B][/JUSTIFY] [LIST] [*][JUSTIFY]equity capital.[/JUSTIFY] [*][JUSTIFY]Debt[/JUSTIFY] [*][JUSTIFY]combination of equity and debt.[/JUSTIFY] [/LIST] [JUSTIFY]These three forms of equity capital can be used in any combination.[/JUSTIFY] [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Money Making Forums
Make Money Online
Stock
Sources of Equity Capital For Startups
Top