Equity Capital

Equity Capital is the funding a company raises by issuing ownership shares to investors. Unlike debt capital, equity capital doesn’t require regular repayment and doesn’t accrue interest, but it does involve sharing ownership and future profits.

Sources of equity capital include:

• Angel investors

• Venture capital

• Private equity

• Public offerings (IPOs)

Equity capital is especially crucial for early-stage and high-growth companies prioritizing growth over short-term profitability.