Type of capital

Types of Capital

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Abstract

This explores the different types of capital available for small businesses in the United States . The also explains the difference between the different types of capital and my opinion on the information provided in the source regarding the different types of capital

Keywords : Types of capital , equity capital , debt capital , angel investors , venture capital Types of capital

Entrepreneurs today looking to start a small business enjoy multiple sources of finance to obtain capital for their business . The US office

br of Small Business Administration has provided a short write up on the different sources of capital available . These include equity capital debt capital , angel investment and venture capital

The article also dwells into the difference between equity and debt capital and provides insights into the type of people who get classified as angel investors or venture capitalist . For example , the article clearly describes that equity capital is money raised by a business in exchange for a share of ownership in the company (Finance Start-up 2010 . The article also describes that angel investors and venture capitalists both stand classified as equity investors . Traditionally angel investors and venture capitalists normally provide capital to young and aspiring entrepreneurs in whose business they see immense growth potential . It is important to note that in the case of an angel investment or venture capital funding , the capital is not secured by the assets of the company . In other words , if the company / venture incur a...