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Different Loans for Startups
By siliconindia
Equity Capital
The money that someone invests in your business in exchange for certain percentage of ownership or stake in the business is called equity capital. It is generally based on the ROI. The investors generally focused on the potential earnings power of the business and not on its assets base or current earnings.
Equity capital includes personal savings, where the startup can use his own personal savings to create ownership in his business; private investors such as angel investors or venture capitalists who usually are interested in such companies where they can easily and quickly get their ROI; and partners, wherein you can ask someone to join your business as a partner and bring in certain amount of capital with him.
