Three ways to raise capital
Businesses are living organisms. To survive, they need inputs.
Sustenance. Funds. Organic revenue is the most natural and
convenient food for your business, but at some point, you might
need to seek funding elsewhere. So, how do you raise capital and
what are the rules you need to be aware of? What options are out
there, and which is the savviest for start-ups? Read on for
fundraising clarity and confidence.
1. Equity Financing
Equity financing is one of the most common ways to raise
capital, through the sale of shares in your company (aka equity in
your business).
While there are rules that apply to equity financing (set out
under The Corporations Act 2001 (Cth) (the
"Act")) for both privately-owned and
public companies, we'll focus on privately-owned company
requirements, because that's what most start-ups will be.
