Get to know of Equity Financing, a trend fast catching up in India to fund startups. Know of the different ways of equity financing and the kind of investments they offer.

1. Equity Financing

2. • Equity Financing is a trend fast catching up in
the Indian Investment Network.
• Equity Financing refers to raising funds by
selling a stake or a percentage claim of your
company.
• . One way to do this, as most established
companies prefer to, is to go for an IPO (Initial
Public Offering) and sell shares to multiple
investors.

3. • The other route, that the Startup Companies
usually take, is to generate funds through
investors in return for an equity stake in the
company.
• While the former makes use of the Stock
Exchange and has multiple investors, the latter
doesn’t involve stocks and doesn’t usually
involve Multiple Investors.

4. Who does this Equity Financing?
• Equity Financing in India is usually done by the
Venture Capitalists and Angel Investor.
• While Venture Capitalists fund companies
eyeing expansion, the Angel Investors usually
provide Seed Fund for the Startups.
• There has been an upsurge in the number of
Equity financers given the fast growing
economy India is and the growing number of
startups India is witnessing.

5. • Entrepreneurs have to be a wee bit careful
while generating funds by not giving away too
much stake in the company to the investors as
it might put at stake their hold over the
company.
• Some Entrepreneurs feel a bit insecure to part
away with a stake in their company and look
for other ways of fund generation.
• They either go for bank loans or grants from
various sources and work their way with the
interests.

6. • But for those who are OK with having to part
away with a stake in their company, Equity
Financing in the best option available.
Utthishta is one such seed fund that
offers funds to startups in return for an
equity stake in the company.

7. Contact Us
• www.utthistha.com
• Blog : http://www.utthishta.com/blog/
• Slideshare: http://www.slideshare.net/Utthishta
• Youtube: http://www.youtube.com/UtthishtaSeedFund
• Google + https://plus.google.com/108795327446527541978/
https://www.facebook.com/utthishta
@Utthistha