Another path for raising funds is ‘equity financing’. To scale your business, one needs to raise money for growth. Irrespective of whether you’re looking to start your venture or expand an existing business, capital is a fundamental requirement for any kind of business. However, raising funds for small & medium businesses is quite a tough task. Most business owners go for the standard strategy of bank loans, which is expensive as well as challenging to achieve in the first place. Secondly, business owners must deleverage their balance sheet, and hence they need to consider other specialized sources to raise funds like equity financing. Equity financing is a method of raising funds for your business from investors. In return for the capital provided by the investor(s), you offer them shared ownership of your business, in the form of shares. Several types of equity funding are available to startups, small enterprises, and other mid-sized businesses.
