Equity capital refers to the funds raised by a business in exchange of ownership shares in the company. Ownership, in turn, is represented by possession of stock shares either outright or the right of converting other financial instruments into the private companys stock. Two primary sources of equity capital for the new businesses are institutional investors and venture capitalists.

Whether you intend to raise money from a financial institution or your family and friends, you should approach them professionally. Equipped with a detailed business plan, you need to impress them with your capabilities and the prospects of your business. No one would like to lend you money out of friendship.

If you’re an entrepreneur or a small business person one of the first tasks you have to accomplish is finding money for starting a business. There are several options depending on how much money you need.

When presenting your business plan to an angel investor you must understand that they will be very interested in your spreadsheets and proformas, but you must also realize that it is typically an entrepreneurial optimistic approach, which causes problems with proformas.

There are a number of uses when it comes to the term “Angel”. You have the traditional protective version typically called Guardian Angels (both real and the ones with a beret). You also have the more proactive uses. Examples include Angels in the Outfield – a kids baseball movie where real Angels help the Anaheim Angels baseball team find their confidence again. Also, Angel investors that help small businesses or start-ups with initial capital. But what are Networking Angels?

Once you have made the decision to purchase a franchise, you need to obtain funding. Determining if you can find the necessary investment capital may affect your decision to start a franchise. This is an important part of your business plan, and it can be a much harder goal to achieve than you may realize.

There are a variety of ways of going public. One way for a company to go public is an IPO. In an initial public offering a company is doing two things simultaneously. One it is raising capital; the other it is going through the procedure of going public. We assist companies with the second part which is becoming a public company and having its own stock symbol and public stock which people can buy from their broker or online like any other public company.

Almost every company goes through it, except for the fortunate few. Some people have gone through it multiple times. While never easy, raising money for the second or third time (assuming success the first time!) is a picnic, compared to the first time. The questions that run through an entrepreneurs mind are nearly endless. Do I even need the money? Is my company fundable, regardless? How much do I need? How much should I try to raise? Whats the best time to start raising money? What type of investor should I approach, and what are their expectations? How should I go about approaching them?