Raising capital by selling shares or ownership stakes in a company.
Equity financing is a method of raising funds for a small business by selling ownership shares or equity stakes in the company to investors. It involves offering a portion of the business in exchange for capital investment, enabling the business to obtain funds without taking on debt. Small business owners can attract potential investors by presenting their business plans, growth potential, and financial projections. Equity financing provides an opportunity for investors to become partners in the business and share in its profits and losses. It is an effective way for small businesses to access capital for expansion, research and development, hiring, or entering new markets while sharing risks and rewards with investors.