Equity capital is capital raised from the owners of the company. This is different from debt capital which is money raised by incurring debt through the issuance of debentures and other types of bonds. Owners can choose to sell equity in the company, in the form of stock, to investors. This is usually done through a direct offering to the public or through an underwriter like an investment bank. Equity capital is used to get companies off the ground.
onEntrepreneur is an online magazine centered on business, finance, marketing, technology and more. We are regularly updated – sign up with our newsletter to send the updates directly to your inbox.
Subscribe to Updates
Get the latest creative news and ideas from onEntrepreneur about business, finance, marketing and more.
onEntrepreneur is the go-to source for entrepreneurs looking to get ahead. Our online magazine offers practical, actionable advice to help startups succeed across key areas like business strategy, marketing, technology, leadership, management and more. Sign up for our regularly updated newsletter to receive our latest articles and insights directly in your inbox.