Equity Capital

This tag is associated with 2 posts

Sources of Equity Financing

Personal savings The first place an entrepreneur should look for money The most common source of equity capital for starting a business Outside investors and lenders expect entrepreneurs to put some of their own capital into the business before investing theirs Friends and family members After emptying their own pockets, entrepreneurs should turn to those … Continue reading

Equity Capital Vs Debt Capital

Equity Capital  Represents the personal investment of the owner(s) in the business Is called risk capital because investors assume the risk of losing their money if the business fails Does not have to be repaid with interest like a loan does Means that an entrepreneur must give up some ownership in the company to outside … Continue reading