Through business equity financing, the risk faced by the entrepreneurs and business owners are at high risk. The portion of the business is being sold to the investors and when that happens, selling the portion larger than that of the owner will make their rights weak and can eventually lose the business they established.
Equity financing can come from different sources. Some still considers engaging in firms established by venture capitalists. Equity financing requires loans and guarantees return of investments by owning a share in the business. In the end, the real business owner may lose it and may lose his power to make decisions.
If you are into equity financing, one must make sure that the propositions made will still be favorable to you than the investor.
Equity Finance for more details.
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