An individual investing personal money for a share in an early-stage startup.
Angel Investor
What is the term for raising money by selling part ownership in a company?
Equity Financing
Investors get shares in return for money.
Equity
Phil Knight started Nike with his own money. This is an example of?
Bootstrapping
The process of going public and selling shares on the stock market.
Initial Public Offerings [IPO]
What is the term for raising funds by borrowing money that must be repaid with interest?
Debt Financing
The company must repay the money with interest.
Debt
This startup was famously bootstrapped and is now a top stock trading platform in India.
Zerodha
Funding collected online from many people in small amounts.
Crowd Funding
Initial funding provided by friends and family to a startup.
Love Money
This gives investors voting rights.
Equity
This smartwatch brand had 20% market share in 2015 in the US.
Pebble
Unsecured interest-bearing loan from the public.
Funding a business using only personal savings or internal resources.
Bootstrapping
Debentures are a form of this financing.
Debt financing
Nike went public in 1980 through?
IPO [Initial Public Offerings]
Professional firms or individuals that invest in high-growth startups for equity.
Venture Capitalists
A company wants to raise money without giving up ownership or control. It decides to issue these financial instruments to borrow funds from the public. What are they?
Bonds/Debentures
This type does not require repayment.
Equity Financing
This iconic company was started with seed funding from its founder and a 50% investment from a track coach, before going public in 1980.
Nike