ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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equity financing
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debt financing
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Either A or B
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None of the above
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Detailed explanation-1: -Individual investors, venture capitalists, angel investors, and IPOs are all different forms of equity financing, each with its own characteristics and requirements.
Detailed explanation-2: -For example: say the pitcher asks for Rs 50 lakhs in exchange for 5% equity. But, if the sharks see more risk in the start-up, they may ask for more than 5% equity in the business for an investment of Rs 50 lakh from their end. If you think your risk potential is low, you may invest lower in high-risk assets.
Detailed explanation-3: -Equity financing involves selling a portion of a company’s equity in return for capital. For example, the owner of Company ABC might need to raise capital to fund business expansion. The owner decides to give up 10% of ownership in the company and sell it to an investor in return for capital.
Detailed explanation-4: -01 of 07. Initial Public Offering. 02 of 07. Small Business Investment Companies. 03 of 07. Angel Investors for Equity Financing. 04 of 07. Mezzanine Financing. 05 of 07. Venture Capital. 06 of 07. Royalty Financing. 07 of 07. Equity Crowdfunding. 16-Jun-2020