PASSAGE 1
Read the passage and choose the correct words to fill in the
don't usua
What is equity finance and is it right for your business?
Raising capital for a start-up or to expand your existing business is always challenging
bank (1)
are not the answer, or not the whole answer, seeking equity finance can
another possible option. Unlike lenders, such as banks, equity finance (2)_
have the legal right either to charge interest or to be repaid by a particular date. They inv
in return for a share of t
capital in a business on a medium- or long-term (3)
ownership of the business, and perhaps also some element of control. Return on the investme
comes in the form of (4) payments and will depend on the growth and profitability
the business. The two main providers of equity finance for private businesses are vent
capitalists (VCs) and business (5)_
(BAS).
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management (7)
Venture capitalists are likely to be interested in high-growth business which are desting
market. They can supply large sums of equi
eventually for sale or flotation on the (6)
finance and may also provide considerable added value in the form of advice on strategy a
However, securing a deal with a VC is invariably a demanding a
VCs also often drive a very ha
time-consuming process and to compensate for their (8)_____
bargain. You might find yourself having to give up a greater share of the company than y
originally expected in order to secure a VC deal. This may ultimately be to your (9)
cash terms: for example, you could end up owning 65% of your company instead of 100%; but
the VC investment has resulted in significant growth, then your new stake will soon i
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3