Equity Financing
1) WHAT ARE VARIOUS SOURCES OF EQUITY INVESTMENT?
Some sources of equity investment are Public Stock and Private Equity. Public Stock consists in new issues of stock offered to the public, whereas, Private Equity consists of  different asset classes consisting of equity securities and debt in operating companies that are not publicly traded on a stock exchange; some of these are: venture capital, leveraged buyout, growth capital, special situations and mezzanine capital.
3) WHAT GUIDELINES SHOULD ENTREPRENEURS FOLLOW WHEN THEY ARE SELECTING A VENTURE CAPITALIST?
Somo guidelines entrepreneurs should follow when they are selecting a venture capitalist are: Scrutinize the business with a critical eye, Beef up management, Keep a high profile so the VCs will visit, Target the search, Keep a lookout, and Investigate possible venture partners.
5) WHAT ARE THE DIFFERENCE BETWEEN A SINGLE-HIT AND A HOME-RUN BUSINESS?
The limited funds are used to build the essential assets for an early sale to a larger company in 2 to 3 years in a single- hit whereas in a home-run, it would have to wait and take high risks which may take seven to eight years.
6) WHAT ARE THE FOUR KEY FACTORS THAT A BANKER SEEKS BEFORE PROVIDING A CORPORATE LOAN?
The four key factors that a banker seeks before providing a corporate loan are:
Character: for example traits as talents, reliability, and honesty
Cash flow: for example cash flow used to cover debt service must be available throughout the term of obligation
Collateral: to support at least part of the loan should the company be unable to meet its obligations
Contribution: by the entrepreneur towards the funding requirement