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Tuesday, July 2, 2019

Equity Loan

Equity loan

Is typically an "investment" in a company that is secured by a certain amount of that company’s shares and structured, in part or whole, as a loan. Investment banks will provide funds secured by the "equity" or ownership shares of your company.

Companies that receive funding are those in large rapidly growing markets, or in niche markets which are not targeted by major players.

Investment Stage

Early and later stage companies with a founder and partial management team with revenue or profits and the need for expansion capital.

Size of the Investment

Typically $1-2 million initially with up to $5-10 million over the life of the investment.

Duration

Investments typically are for 3-5 years, but sometimes may last longer.