Equity Funding

Equity funding is a method of raising money for a business by selling shares of ownership to investors. When a company needs capital to grow or start up, it can offer a portion of its equity, allowing investors to buy in. In return for their investment, these shareholders gain a stake in the company and may benefit from its profits through dividends or an increase in the value of their shares. Equity funding is common among startups and growing companies, as it provides capital without the obligation of repayment typical of loans.