Equity Financing - Survey, assets and liabilities.
Equity Financing - Survey, assets and liabilities. Equity financing is especially important during a company’s startup stage to finance plant assets and initial operating expenses . Investors make gains by receiving dividends or when their shares increase in price. What is Equity Financing? Equity financing deals with selling of companies shares to raise funds. Investors who purchase the shares are also purchasing ownership rights to the company. Equity financing can refer to the sale of all equity instruments , such as common stock , preferred shares, share warrants, etc. Major Sources of Equity Financing When a company is still private, equity financing can be raised from angel investors, crowdfunding platforms , venture capital firms, or corporate investors. Ultimately, shares can be sold to the public in the form of an IPO. 1. Angel investors Angel investors are wealthy individuals who purchase stakes in businesses that they believe possess the potenti...