Investors who take equity in your business become, by definition, co-owners. Equity financing therefore means almost always a requirement for you to give full control of the company.
Unlike real lenders, co-owners generally do not have any interest or interest on a specified date. Their dividends will typically be paid in dividends and depend on the company’s growth and profits.
As investors in your equity take part in the risks that may be associated with your business, equity financing is often called risk capital.
Is Equity Financing The Best Solution For Your Business?
Different types of equity financing are suitable for different business situations.
Venture capital is often used for companies with strong growth and which must be introduced in the stock market.
Our Firm Is Investing In Getting Equity In Your Business.
Due to the high risk that venture funds and our firm investors take, they expect a high return. Therefore, they typically occur in companies with very large growth prospects.
Risk Capital Is Most Appropriate When:
The project has a very high risk profile that discourages ordinary lenders such as banks
The company does not have enough cash to pay interest, as the money needs to be spent on core activities or to finance growth
Questions You Should Ask Yourself:
Are you prepared to submit part of your business and full control of the company? Investors demand progress, reporting and are likely to interfere with important decisions
Are The Growth Prospects Sufficient For Risk Capital To Return?
After considering the above, you should seek professional advice, for example. at your accountant, business consultant or electricity Get free business advice from our experts.…