Equity Financing
/ˈekwɪti ˈfaɪnænsɪŋ/
Definitions
- (n.) The process of raising capital through the sale of shares in a company, representing ownership interests rather than debt obligations.
The startup secured growth capital through equity financing from venture capitalists.
Related terms
See also
Commentary
Equity financing contrasts with debt financing; careful drafting distinguishes between ownership interests and creditor claims in transactional documents.
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