Equity Finance

Equity finance is a method of raising capital by selling a share of your business to investors. In exchange for their cash, the investors become part-owners of the company. Unlike debt finance, there is no monthly repayment and no interest to pay. Instead, the "cost" of the money is a portion of your future profits and a say in how the business is run

How It Works: The Trade-Off

When you use equity finance, you are essentially betting that your company will be much more valuable in the future. You give away a "slice of the pie" now so that the "whole pie" can grow much larger.

Why choose Equity over Debt?

Equity is often the only choice for startups or highly innovative companies that don't have enough steady cash flow to guarantee monthly loan repayments. It allows you to take bigger risks because you aren't burdened by debt while you try to find your "product-market fit.