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.
\r\nEquity 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.
\n","docType":"article","guid":"articles_cea385a4b7544a93437ddc38218ea23d","lastModified":"2020-12-17T13:54:00.000Z","published":"2020-12-17T13:54:00.000Z","structuredData":null,"subtitle":"Raising equity is an appealing funding option for many startups.","template":"v1","title":"How to Raise Equity","type":"article","author":{"avatar":"https://staging.business.com/images/author/5e6/ad3955a215e56118b45a3/100-100","bio":"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.","name":"Max Freedman","image":null,"slug":null,"social":{"facebook":"","linkedin":"","twitter":null,"website":"http://scs-creative.com/"},"status":"enabled","title":null,"type":"Contributing Writer","user":{"imagePath":"https://staging.business.com/images/undefined","profile":{"company":"","jobTitle":"Researcher","website":""}}},"breadcrumbs":null,"channels":{"primary":{"name":"Finance","slug":"finance"},"sub":{"name":"Funding","slug":"funding"}},"meta":{"robots":"index, follow","description":"Raising equity is one way to infuse capital into your business. Here is how to successfully raise equity for your business.","title":"3 Ways to Raise Equity - business.com"},"parsedContent":{"toc":[{"id":"what-is-equity-financing","title":"What is equity financing?"}],"json":[{"component":"p","children":["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."]},{"component":"h2","props":{"id":"what-is-equity-financing"},"children":["What is equity financing?"]},{"component":"p","children":["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 ",{"component":"Link","props":{"href":"https://www.business.com/articles/establish-team-going-public/"},"children":["How to Assemble the Right Team Before Going Public"]}," to help you decide. Your equity financing options may differ based on your decision."]}]},"resource":null,"sponsorship":{"sponsorType":"no-sponsor","name":null,"thumbnail":null,"bio":null,"slug":null,"status":null,"social":{"website":null,"linkedin":null,"twitter":null,"facebook":null}},"thumbnail":{"path":"https://staging.business.com/images/content/5fd/8fbb47b4374825c8b4567/1500-0-","caption":"Prostock-Studio / Getty Images","isBlurred":false},"bestPicks":null},"related":{"relatedArticles":[],"relatedReviews":[{"doc_type":"category","thumbnail":"https://staging.business.com/images/rz/5e46e2fc5a215eab4d8b457c/taxes_pano_Prostock-Studio_getty.jpg","canonical":"https://staging.business.com/categories/best-tax-debt-relief-services/","title":"The Best Tax Debt Relief Services of 2021","dek":"Looking for the best tax debt relief service? We have easy-to-read, unbiased expert reviews and feature comparisons of the best and cheapest services.","slug":"best-tax-debt-relief-services","lastModified":"2021-03-23T20:42:00Z"},{"doc_type":"category","thumbnail":"https://staging.business.com/images/rz/5dfbca819c658adc118b4568/Payroll_AndreyPopov_Getty.jpg","canonical":"https://staging.business.com/categories/online-payroll-services/","title":"The Best Online Payroll Services of 2021","dek":"Our team has compared the best online payroll services for 2021. See up-to-date reviews and costs for the top services.","slug":"online-payroll-services","lastModified":"2021-03-19T20:05:00Z"},{"doc_type":"category","thumbnail":"https://staging.business.com/images/rz/5df3d8695a215e58428b4570/POS_GETTY_DERO2084.jpg","canonical":"https://staging.business.com/categories/best-pos-systems/","title":"The Best POS Systems of 2021","dek":"Before you choose a POS system, check out our reviews of the best picks for 2021. ","slug":"best-pos-systems","lastModified":"2021-03-17T17:33:00Z"}],"relatedSponsoredArticles":null}},"pageContext":{"displayModified":"2020-12-17T13:54:00.000Z","template":"v1","title":"How to Raise Equity","meta":{"robots":"index, follow"},"docType":"articles","slug":"how-to-raise-equity","canonical":"https://staging.business.com/articles/how-to-raise-equity/","skipTOC":false}},"staticQueryHashes":[]}