Acquiring capital through equity financing
When acquiring capital through equity financing, the company receives equity through one or more partners, with the funds originating from outside of the company. The need for this type of financing occurs when creating the company and at the time of capital increases.
Equity financing includes cash contributions, and contributions in kind or in rights.
Fundamentally, this means that when providing equity financing, lenders obtain a right to the profits, assets and liquidation proceeds. They are also joint guarantors of the risks of the company, which, depending on the legal structure, may be limited to the amount of the contribution. Moreover, lenders have the right to receive information, intervene and make joint decisions. Capital is generally available for long periods, but capital may also be provided for short durations for one-person businesses and partnerships (depending on the contractual terms).
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Business angels: A good financing method
Business angels adopt the same approach as venture capitalists, albeit on a slightly more modest scale.
Raise funds through crowdfunding
In search of loans, investments or donations for entrepreneurial projects? Numerous online crowdfunding platforms enable Swiss SMEs to obtain financing directly from individuals, bypassing traditional players.
Venture capital solutions
Some financial companies have become specialists in granting venture capital. Here is an overview.
Who are your potential investors?
"External" money from banks, investors or friends is also part of equity, insofar as it is venture capital or share capital whose return will depend on the company’s performance, contrary to a loan.
Withdrawing capital from pension funds
Entrepreneurs wishing to start up a company can withdraw retirement benefits from a pension fund to be used as equity.
