Startup Terms Glossary
What is Equity Financing?
Equity financing is the process of selling a small part of a company’s value in exchange for capital. For example, a business owner might sell 5% of his company’s equity (value) for a certain amount of money.
This is the way that many startups plant assets and first operating expenses. Equity financing opens borrowers up to alternative funding sources.
Equity Financing Examples
Examples of equity financing types for a startup:
- Example 1. Angel investors
- Example 2. Venture capital
- Example 3. Crowdfunding
- Example 4. Corporate funding
- Example 5. Initial public offering
Learn about equity financing by checking out this page .