Equity Funds invest in stocks and businesses and allow investors to buy into the funds so that they can carry on investments in businesses that they may not be able to buy into as individuals. We help to connect equity funds with viable businesses and opportunities for investment after we have done feasibility studies to ascertain the viability.
Equity represents the ownership stake that both the business owner and other investors have in a company. Equity financing involves raising money through investors. When a business owner uses equity financing, they are selling part of their ownership interest in their business.
There are three basic types of investor funding: equity, loans and convertible debt. Each method has its advantages and disadvantages, and each is a better fit for some situations than others.
Like so much else about the fundraising process, the kind of investor-based fundraise that is right for you depends on a number of factors: the stage, size and industry of your business; your ideal time frame; the amount you are looking to raise and how you are planning to use it; and your goals for your company, both short-term and long.
Pursuing an equity fundraise means that, in exchange for the money they invest now, investors will receive a stake in your company and its performance moving forward. Equity is one of the most sought-after forms of capital for entrepreneurs, in part because it’s an attractive option no repayment schedule! High-powered investor partners and in part because it’s the form of capital that requires the most seeking.
General equity funds include:
- Aggressive growth funds, which seek maximum capital appreciation and may use speculative strategies.
- Small-company funds, which invest in companies with relatively small market capitalizations.
- Growth funds, which invest in larger, established but growing companies. They generally emphasize capital appreciation.
- Growth and income funds, which invest in larger, established companies that offer the potential for capital appreciation but also pay regular dividends.
- Equity-income funds, which primarily invest in dividend-paying stocks.