External Funding
External Funding refers to capital raised from sources outside of the company, including venture capital, angel investors, or crowdfunding.
Benefits
External funding helps businesses grow without using their own money. It allows for expansion and development of new products or services.
Frequently Asked Questions
What are the external sources of capital?
External sources of capital include venture capital, angel investors, and crowdfunding platforms. These sources provide money to companies from outside.
What does raising external capital mean?
Raising external capital means getting money from outside sources. This can include investors or the public to fund company operations or growth.
How do companies raise capital externally?
Companies raise capital externally by reaching out to investors or using crowdfunding. They present their business plans to attract funding.
Key Takeaway
External funding is key for growth, especially for start-ups. It provides vital resources for expansion and innovation.