What Types of Funding Options are Available for Companies?
Every business needs capital for development, growth, and expansion. Whether it is a start-up business or a relatively established company, fresh funding allows a business to scale up operations and hire more employees. The business may also purchase more tools and resources, invest in research and development and more. Why is fundraising important? Sometimes internal funding is not a viable option. This is especially so if the business has not begun to bring in adequate or stable profits. Business owners often turn to external funding from interested investors. There are two main funding options when it comes to raising funds externally – equity investments and debt investments. Funding in Singapore – Seed Capital, Series A, B and C Equity Investments – Shares Equity investments are basically shares or stakes in a company. Investors can buy into a company. The capital investors put into the company enlarges its equity. It also enables investors to receive a cut of the profits that the company declares (i.e. receive dividends). The return to investors depends on how well the company does in terms of revenue and profits. There are two types of shares companies can issue – ordinary shares (also called common or normal [...]
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