Truth 25. Equity funding
Equity funding is obtaining money from an investor. Investors are typically interested in businesses that plan to grow and can capture fairly large markets. These businesses normally have a unique business idea and a proven management team and are shooting to capture large markets. If your business fits this profile, and you’re willing to accept the hectic pace of activity that running a rapid growth business entails, seeking equity funding may be a good option for your business.
The primary advantage of equity funding is access to capital, which is the reason it’s often pursued by businesses that have high start-up costs. In addition, because investors become partial owners of the firms they invest in, they often ...
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