Equity in Funding

Equity in funding refers to the way businesses raise money by offering investors a share of ownership in the company. Instead of borrowing money, a company sells a percentage of itself to investors in exchange for capital. This means that investors gain a stake in the business, and their returns depend on the company’s future profits and success. Equity funding can come from various sources, including venture capital, angel investors, or crowdfunding, and allows companies to access the funds they need for growth without the obligation of repayment.