Sources of Equity Financing
Venture Capitalists
With venture capitalists, you get investment partners that help meet your business goals and make profits in the process. They help you understand investment choices you can make and avoid risks in return. You also utilize experienced opinions from venture capitalists when you consider them for equity financing.
Angel Investors
When you need individuals or companies keen on seeing your business proposition succeed, you should consider angel investors. The fact that they have personal interests in the investments makes the equity arrangement with angel investors more productive to your needs. As a startup business, you have more chances of growing when you seek an angel investor.
Corporate Venture Capital
You should note that established companies can also be a source of equity financing when you consider them. Corporate venture capital can help you meet your business objectives in return for a stake in the business. This is beneficial as you will have oversight authority over your business.
Benefits of Equity Financing
Cut a Business Partner
When you consider this type of financing option, you have a chance to cut out the bank as your business partner. You will avoid spending cash on loan repayments as you can utilize the infusion with the equity investor for business growth.
Reduced Personal Risk
With the infusion of equity investors, your business remains in the best hands as you have financial support, reducing risks even when your business fails.
Bankruptcy Protection
In worst cases, equity financing will help you file for bankruptcy and give your business protection in the process. Even in such cases, you will still have your business as the equity investors will not return their original investment.
It is a Long-Term
There is a long-term solution with equity financing as long as the business remains functional and sustainable in the market. You also inject more cash and experience when you look for equity investors.
As a business owner, there are several reasons to use equity financing. Reach out to Triport Lending today for more information and guidance.