equity-funding

Vocabulary Word

Definition

'Equity funding' is when a business gets money from investors to start or grow. In return, investors get ownership shares and a say in how the company is run. It's like business crowdfunding.

Examples in Different Contexts

In financing strategies, 'equity funding' is a way for businesses to raise capital by selling company shares to investors. A business owner might explain, 'We're considering equity funding to fuel our expansion plans, offering investors a piece of our future profits.'

Practice Scenarios

Business

Scenario:

Our startup is still in its early stages, but we need additional capital to expand, especially for marketing and product development.

Response:

In that case, perhaps we should consider obtaining equity funding. This would not only provide us with the necessary capital but also bring more credibility and valuable connections.

Financial

Scenario:

The company’s financial performance has been steady, but their market penetration and competitive positioning need strengthening.

Response:

That's a good point. Maybe it's time for the company to seek additional equity funding to scale their operations and gain a competitive edge.