Equity investment means you’re trading funding for a stake in your company. Unlike a debt provider like a bank or lender, an equity investor isn’t looking for a simple interest payment on the money they’ve provided you. They are exchanging more risk for more reward – a lot more.

The “more reward” part is what you should be paying attention to. Equity investors aren’t interested in earning 8% on their money with these types of investments. They are looking for 50%, and most likely a lot more. That means you’ll need to prove that your investment can yield a massive return on their capital.

Not Every Business Makes Sense for Equity Capital

Equity capital tends to follow businesses and industries that c...