Equity Financing

Podcast Duration: 06:21
Angel Broking podcast ke iss episode me aapka swagat hai.

Kya aap kisi business ke maalik hai? Ya phir future me kabhi business kholna chahte hain? Agar aapne apna business kholne ka kabhi bhi socha hai, toh aapko pata hi hoga ke business shuru karne ka sabse bada challenge business idea ya business plan nahi balki funds hote hain. Business me fresh capital lana aur phir finances ko steady aur stable rakhna is a constant struggle. But there’s one way in which finances can be taken care of - jiske baare me shayad bahut logon ne nahi suna hoga - it is called equity financing.

Aaiye equity finance ke baare me detail me jaante hain.

Sabse pehle toh equity finance ka matlab kya hota hai? Basically - agar aap apne business ke liye paisa raise karne ke liye apni company me shares bechte hain, toh use equity financing kehte hain - as the name indicates - equity ke through financing. Exactly kaise equity financing ki jayegi ye depend karta hai business par, external factors par, economy par. Your sources of equity financing could be family and friends, external sources like investors and IPOs, etc.

Equity financing ka process aakhir hota kya hai? Dekhiye pehle ye samajhte hain ki jab funds ki zarurat padti hai toh business owner apni company ko kaise funds provide karta hai. You can either choose debt financing or equity financing. Ab ye dono concepts kya hai? Naam se hi clear hai ke debt financing ke under aap kisi financial institution ya bank se loan yaani debt lete hain. Loan lene se aapki company me us financial provider ko equity toh nahi milti, lekin loan ko repay karne ke liye bahut hi strict repayment schedule hota hai. You have to pay regular EMIs. In fact, debt financing ke under you repay the principal amount along with a very high rate of interest charges.

Agar aap bhaari interest rates ko avoid karna chahte hain ya simply debt nahi lena chahte - toh equity financing ka option is suitable for you. Equity financing se aapko company ke kuch stocks ek investor ko mil jayenge and in return woh investor aapko unn stocks ke equivalent funds dega. stocks ya shares ka exact amount toj company ko total value se pata chalega. Company ke worth ke hisaab se investor kitna amount invest karna chahta hai- uske hisaab se equity allocation kiya jaata hai.

Vaise to equity financing is a fairly straightforward concept. Chaliye ab jaante hain types of equity financing. Aap aksar news me sunte hai - angel investors. It is almost like a buzzword. Angel investors actually refers to a very specific set of investors. Ye investors woh High Net Worth Individuals hote hain jo apne kuch funds company me invest karke uske badle me company me equity lete hain. Angel investors aur aam investors me ye fark hota hai ke angel investors usually company ke beginning ke stages me hi invest karte hain. Agar unhe company ke business idea me potential dikhta hai, then they invest for the company’s development. This way, they are taking a huge risk, lekin at the same time, agar company successful ho jaati hai to they are able to make the most of the company’s explosive growth.

Equity financiers ki doosri category hoti hai venture capitalists or VCs for short. VCs professional aur experiences investors hote hain jo bahut selective businesses me hi invest karte hain. Koi bhi investment karne se pehle woh bahut baareeki se company ko study karte hain, uska business idea aur strategy samajhte hain. In fact, VCs aksar companies ke operations ko bhi manage karne ke liye advise karte hain.

Equity financing karne ka teesra tareeka hai through an Initial Public offering, jise hum short me IPO kehte hain. IPO is an option available for a privately held company, jisse woh public se paisa raise kar sakti hai. Isme bahut saare financial players involved hote hain: ek investment bankunderwrite karta hai, public shares khareedti hai aur ultimately stock exchange par shares list kiye jaate hain

Finally, funds raise karne ka ek aur option hota hai - crowdfunding. Jaisa ki naam se hi clear hai, crowdfunding ke under bahut saare logon se - ek crowd se funds collect kiye jaate hain. India me crowdfunding ke liye kayi online platforms maujood hain.

Now that you know the types of equity financing modes, let’s discuss the benefits of equity financing. Koi bhi company debt financing ke comparison me equity financing kyu karna chahegi? Equity financing se aur kya supplementary benefits milte hain? Let’s see. First of all, debt financing me humare funds ka source lenders hote hain. On the other hand, equity financing me hum investors se funds raise karte hain. Equity financing me paisa repay karne ka burden nahi hota. Instead, equity me funding ke badle investors ko company ko ownership di jaati hai. Simple!

Another advantage of equity financing is that it does not affect your credit score. How come? Equity financing me aapko kisi se paisa ‘borrow’ nahi karna padta. Isme na hi koi interest involved hota hai na hi koi strict repayment schedule. This means that your creditworthiness remains untouched. Finally, equity financing se aapko entrepreneurial advice aur expertise bhi milti hai. This is a distinct benefit of equity. Agar aap angel investors ya VCs se funds raise karte hain, toh woh aapko business se related advice bhi dete hain aur apne experience aur lessons bhi share karte hain - and usually, they are experienced entrepreneurs themselves!

So let’s quickly sum up what we now know about equity financing: Agar aapko company ownership ke badle funds raise karne ke liye ready hai, toh equity financing bahut hi suitable tareeka hai funds raise karne ka. Equity financing me bhi aapke paas options hote hai - kisse funds rise kiye jaayen aur kaise. A good round of solid funding can make a huge difference for your business in the growth phase. Agar aap apne start-up ko aage badhana chahte hain, do consider the option of equity financing.