What are the types of business investors?

Equity financing is a way to raise funds by selling ownership in your company. In exchange for money from investors, you must give them a portion of ownership and control in your business. Typical investors are friends and family, angel investors, venture capitalists and crowdfunding.

• Crowdfunding:  Involves lots of smaller sums of money instead of one or two large investments. You will have to reach out to a large number of people (investors) typically through an online platform

• Friends and family: Friends and family choose to invest in your business through a gift, a loan or an equity investment in the business

• Angel investors: High-net-worth individuals who get an equity stake in return for their financing

• Venture capitalists : Pool money from many investors who take equity in your business in exchange for financing