Equity Raise

Definition

Selling ownership stakes in your company to investors for cash, or 'we're diluting your shares to avoid running out of money.'

Example Usage

We completed a Series B equity raise of $20M, bringing our post-money valuation to $100M.

Origin

Standard startup finance terminology.

Fun Fact

Early investors get better terms (lower price, more rights); later investors pay more for the privilege of joining a crowded capitalization table.

Source: Equity Finance

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