šŸ’° Raising Debt Capital vs Equity Capital šŸ’°

With startups, it's all about growth!

And searching for additional funding will likely come from outside sources.

Failing to secure additional funding (capital) will lead to a company folding.
According to a CB Insight study, 29% of startups fail due to a lack of capital.

Fortunately, there are two primary capital sources available - Debt and Equity

But which is better?

The difference and advantages:

šŸ’° Debt capital is where you borrow money to be repaid at a later date.
šŸ’° Equity capital is where you sell shares of the business towards another.

šŸ‘‰ Debt capital, you don't lose ownership; with equity, you don't have
šŸ‘‰ Equity capital you deal with shareholders, with debt only lenders.
šŸ‘‰ Debt regulates your activities while with equity, you're not restricted.

Determine which capital structure will best benefit your startup in the long

And don't put raising capital on the back burner!

Anything to add?

Do you prefer debt or equity capital? šŸ¤” šŸ‘‡

#startup #PrivateEquity #VentureCapital #investors

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Originally posted by Greg Brinson on LinkedIn
link: linkedin.com/in/gregbrinson