When your startup has stable revenue streams, with a proven history of growth, you’ll be ready to raise your Series C funding round. At this stage of funding, your customer base needs to be strong and reliable over time. In Series B funding rounds, your company would sell preferred shares that do not provide its holders with voting rights.
What are the two types of equity funding?
There are two methods of equity financing: the private placement of stock with investors and public stock offerings. Equity financing differs from debt financing: the first involves selling a portion of equity in a company while the latter involves borrowing money.
One of the advantages of crowdfunding is that none of the “investors” is a shareholder of the startup, so you simultaneously attract the capital to “promote” your project and keep the integrity of your company’s assets. A business plan has been formed, …