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Raising Venture Capital Has Advantages and Disadvantages

When you’re raising funding for your company, your biggest decision involves whether to seek equity or debt financing. Venture capital is a type of equity financing. It is significantly different from traditional debt financing, which usually takes the form of borrowing funds from a bank or other lending institution.

The need to qualify for equity financing is a significant disadvantage to seeking funding from a VC firm. These firms look for investment opportunities in companies that are growing rapidly and …

Why Are Angel Investors the Preferred Sources for Equity Financing?

In the past, venture capitalists ruled the industry of equity financing for many reasons. These organizations provide for large sums of money in the millions to companies that require additional funding either for start-up operations or for expansion plans.And then along came the angel investors.

They changed the face of the financing in more ways for many reasons that will be discussed later. The term was taken from the theater world when investors who were willing to finance theatrical productions …

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