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How to Raise Equity

Max Freedman
Max Freedman Contributing Writer
Dec 17, 2020

Raising equity is an appealing funding option for many startups.

You don’t always have to take out loans to grow your business. Instead, you can raise equity, which allows you to finance deals by exchanging company ownership for capital. If you are considering this option, it is important to have a clear understanding of equity financing, its advantages over funding alternatives and how you can raise it.

What is equity financing?

Equity financing is when an investor provides capital in exchange for a stake in the business. An investor provides the capital needed for business growth, and the business gives the investor a proportionate number of shares in the company. Angel investors and venture capitalists and How to Assemble the Right Team Before Going Public to help you decide. Your equity financing options may differ based on your decision.

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Prostock-Studio / Getty Images

Max Freedman
Max Freedman Contributing Writer
Max Freedman is a content writer who has written hundreds of articles about small business strategy and operations, with a focus on finance and HR topics. He's also published articles on payroll, small business funding, and content marketing. In addition to covering these business fundamentals, Max also writes about improving company culture, optimizing business social media pages, and choosing appropriate organizational structures for small businesses.