Equity financing involves selling an ownership stake in your business in order to obtain capital. Equity financing requires that a firm find willing investors. Selling ownership also means relinquishing some fraction of control, autonomy, and decision rights to investors.
- VC?s (venture capital) ? a form of private equity a type of private equity typically directed toward early-stage firms with high potential earnings.
- Angels/Micro Angels – individuals who invest in businesses looking for a higher return than they would see from more traditional investments.
- CDVC (community development venture capital) ? similar to VC?s, but directed toward businesses in economically distressed areas, usually in the interest of spurring economic development.