Angel Investment and Venture Capital
Many businesses never get to the point of needing or wanting outside equity capital. The founders can use internally generated cash and loans to expand the enterprise to a size that, to them, is manageable and satisfactory. Best of all, this route avoids selling a share of ownership to outsiders.
Other businesses, however, have broader opportunities for growth. To realize this growth, these firms must at some point seek equity capital from outside investors to finance that growth. Debt financing and internally generated cash are rarely feasible solutions.
Equity capital provides rights of ownership; it gives ...