Equity vs. Debt Capital

Equity

Personal Savings

Family & Friends

Angel Investors

Partners

Corporate Venture Capital

Venture Capital Companies

Public Stock Sale

Debt

Commercial Banks

Non-Banks

State and Local Development Programs

Internal Methods of Financing

Equity financing represents the personal investment of the owner (or owners), and it offers the advantage of not having to be repaid with interest.

Debt capital is the financing that a small business owner has borrowed and must repay with interest. It does not require entrepreneurs to give up ownership in their companies.

Floating topic