• Equity Financing is a trend fast catching up inthe Indian Investment Network.• Equity Financing refers to raising funds byselling a stake or a percentage claim of yourcompany.• . One way to do this, as most establishedcompanies prefer to, is to go for an IPO (InitialPublic Offering) and sell shares to multipleinvestors.
• The other route, that the Startup Companiesusually take, is to generate funds throughinvestors in return for an equity stake in thecompany.• While the former makes use of the StockExchange and has multiple investors, the latterdoesn’t involve stocks and doesn’t usuallyinvolve Multiple Investors.
Who does this Equity Financing?• Equity Financing in India is usually done by theVenture Capitalists and Angel Investor.• While Venture Capitalists fund companieseyeing expansion, the Angel Investors usuallyprovide Seed Fund for the Startups.• There has been an upsurge in the number ofEquity financers given the fast growingeconomy India is and the growing number ofstartups India is witnessing.
• Entrepreneurs have to be a wee bit carefulwhile generating funds by not giving away toomuch stake in the company to the investors asit might put at stake their hold over thecompany.• Some Entrepreneurs feel a bit insecure to partaway with a stake in their company and lookfor other ways of fund generation.• They either go for bank loans or grants fromvarious sources and work their way with theinterests.
• But for those who are OK with having to partaway with a stake in their company, EquityFinancing in the best option available.Utthishta is one such seed fund thatoffers funds to startups in return for anequity stake in the company.
Contact Us• www.utthistha.com• Blog : http://www.utthishta.com/blog/• Slideshare: http://www.slideshare.net/Utthishta• Youtube: http://www.youtube.com/UtthishtaSeedFund• Google + https://plus.google.com/108795327446527541978/https://www.facebook.com/utthishta@Utthistha