Whether your company is just starting out or has already
achieved a level of growth, almost every business will eventually
need capital to fuel expansion or tackle new projects. Equity
financing is a tried-and-true way to secure this capital, but many
entrepreneurs are unfamiliar with how it works.
What is Equity Financing?
Equity financing allows businesses to raise money by offering
investors a stake in their company's ownership. Simply put,
shares are exchanged for funding. The goal is to raise the capital
needed to drive your company to the next stage of growth.
Equity financing can happen at various stages of a company's
development, hence the term "round." Each subsequent
round typically targets increasingly larger and more sophisticated
investors. These rounds are often referred to as
"pre-seed," "seed," "Series A,"
"Series B," and so on.
