Equity Shares to Investors: Everything Startups Need to Know
One big thing on the mind of business owners behind fresh new startups is investors.
For the most part, startups can’t really go without investors. And if a startup is boasting a product or service that people believe in, they can usually bring in a good group of investors.
But the one big questions that startups struggle to answer is, “How many equity shares should I give to an investor?” A lot of startup leaders don’t know what a valuation is or how much their business is actually worth.
We’re going to answer those questions and a whole lot more. But first, let’s refresh a little bit on what equity shares (and some other terms you’ll need to know ) actually mean.
What are Equity Shares?
Equity refers to the value of shares issued by a company. Shares are units used as mutual funds or limited partnership and are used as capital to express the ownership level between a business and a shareholder of that business.
