CHAPTER 3•FUNDING SOURCES FOR BUSINESSES ON THE “GROW” 53
Typical examples of equity holders include the founding team, pri-
vate investors (family, friends, and business angels), small business
investment companies (SBICs, which are similar to venture capital
partnerships, but which can leverage invested capital with debt), pri-
vate venture capital partnerships, partnerships affiliated with financial
corporations, investment banks, corporate venturing programs, and
direct investments from banks or financial corporations.
Sources of Equity Capital
The kind of private equity investment that might be most suitable for a
young venture varies according to the age, stage of development, and
capital needs of the business. Investments by family, friends, and ...