What are the Benefits of Equity Financing?

[Suba]

Equity financing is a strategy to raise funds from investors or third parties, whether in the form of stock IPOs, venture capital, crowdfunding and angel investors. So what do you think are the benefits of equity financing?

 

[King Belieal]

The good thing about equity financing is that the investors also share in the risks of the business and you are not liable to make refunds in case of a downturn.

 

[Springtime]

The benefits are that you do not have to repay the funds unlike in borrowing money. You may also have access to expertise and knowledge from investors.

 

[Kross]

The benefits are that you do not have to repay the funds unlike in borrowing money. You may also have access to expertise and knowledge from investors.

That's true. The investors would not want to waste their money and would even assist the entrepreneurs to get markets for the products.