Raising Capital: Money To Start Business
Depending on your business idea and the planned implementation, as a start-up, you have to determine a capital requirement. You now have to cover this capital requirement – for which you have various options. Basically, you can differentiate between equity and debt capital.
What is equity?
Equity is money that the company owns. You don’t have to repay this. For that, you have to be ready when you find an additional equity investor to give up part of the company. In contrast, there is borrowed capital, which usually bears interest and you have to pay it back.
In addition to equity and borrowed capital, when setting up a company, you should also check whether you can get subsidies. It is important to adhere to the formal criteria.