Other Sources of Equity Capital

Corporate strategic investors, individual buyers, and specialized investment groups can often be a good source of equity capital for companies, when a company does not meet the criteria of a venture or buyout fund. Corporations are always looking for new product lines, new markets, new customers, and sometimes new managers. They often invest with the idea of buying the company at a later date, and in the meantime, their involvement will usually lead to greater sales and greater value for your company. Individuals are often another good source of capital as they are looking to buy companies in which the management team remains in place and with new capital, grows the business. Occasionally specialized investment groups can be a good source of capital when there is some kind of special situation such as an expansion to a foreign country, a turn around situation, or bankruptcy.