If you require additional finance but are unable or unwilling to increase your borrowings, venture capital (also known as private equity) may be the answer. Venture capital firms provide financing in return for a proportion of your shares.
They take a higher risk than banks in the expectation of receiving higher returns. For your part, you have to decide whether the involvement of a venture capital firm is worth a smaller slice of a larger pie.
This content is for members only.
You can access this factsheet by logging into the website. If you are not yet a member, you can join now by clicking the button below.
Join now Login