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KnowledgeCity

Equity Capital

Learn about equity funding and its benefits
Preview the first lesson free — get full access to all 4 lessons.
Course: On-Demand
Beginner Provider William Smith  4 Lessons ·  11m  in Arabic, German, English, Spanish, French, Portuguese, Chinese 

Course Description

Business needs are always changing, and especially when it’s time for a business to grow. Although debt can finance activities without giving up ownership power over the business, it’s not always the best option. This is especially true when a business can find a diverse group of investors that spreads the control across many new stakeholders rather than just one powerful new owner who might be looking to cash out after a few dramatic shifts. Business decision-makers benefit from knowledge of both debt financing and equity financing. A careful decision about how to finance emerging business needs will bring the positive and most sustainable results.

In this Equity Capital course, we’ll explore equity financing as a form of capital financing that doesn’t require the business owner and managers to acquire debt. We’ll introduce different equity finance options and sources. You’ll learn about situations where a particular form may be the most useful. We’ll also discuss how businesses find and attract investors.

What You'll Learn

  • Explore equity financing as a form of capital financing that does not require acquiring debt
  • Compare different equity finance options and identify when each is most useful
  • Understand the sources of equity and the considerations involved
  • Learn how businesses find and attract investors
  • Identify the factors that shape financing decisions

Key Takeaways

  • Equity financing lets a business raise capital without the owner and managers taking on debt.
  • While debt can finance activities without giving up ownership power, it is not always the best option for a growing business.
  • A diverse group of investors can spread control across many new stakeholders rather than concentrating it in one powerful new owner.
  • A careful decision about how to finance emerging business needs brings the most positive and sustainable results.
  • Business decision-makers benefit from understanding both debt financing and equity financing.

Frequently Asked Questions

What does this Equity Capital course cover?

It explores equity financing as a form of capital financing that does not require acquiring debt, introducing different equity finance options and sources, situations where a particular form may be most useful, and how businesses find and attract investors.

Who is this course for?

It is aimed at business decision-makers, who benefit from knowledge of both debt financing and equity financing when deciding how to finance emerging business needs.

What topics are taught in the lessons?

The lessons cover Equity Finance Options, Sources of Equity, When to Consider Equity Financing, and Finding Investors.

What skills will I build?

The course is associated with skills in Capital Allocation and Economic Capital.

What will I learn about choosing how to finance a business?

You will learn about equity finance options, understand equity sources and considerations, understand how to find investors, and identify factors in financing decisions.