Equity Investors and Venture Capital

Business owners have choices when it comes to seeking capital. Many business owners are wary of taking on debt and would rather work with peers or investors who can share in the risks, and who can also provide business insight into opportunities for and pathways to growth and business development. Because of our deep relationships in the business sector, we are connected with equity investors, including venture capital. Let’s explore the options.

How do I choose, equity or venture?

Venture capital is only one type of equity investment. Equity simply means you are selling a portion of your business, and a portion of your profits, to an investor for cash. The upside? You don’t owe it back, as you would with a loan. The downside? Until you buy that individual or equity firm out, they own a portion of your profits in perpetuity.

And not all equity is made the same. If your cousin or friend wants to go in with you, and they just want to provide cash to buy equipment, they can do that for a portion of your future earnings. On the other hand, an equity firm can guarantee your salary, but the return they expect is like taking a 58% loan on your business. Growth has do deliver, and when you take the money, your ultimate goal is to grow to the point of making a public offer. Of course, there are equity partners that are in between friends and relatives and the venture set.

Reagan Commercial Capital works with you to find bigger investors than friends and family and we work with you on securing funds all the way up to venture if that is your goal. The benefit? You stay focused on running your business while we do the leg work of building relationships and garnering funds.

How do I choose, equity or venture?

Venture capital is only one type of equity investment. Equity simply means you are selling a portion of your business, and a portion of your profits, to an investor for cash. The upside? You don’t owe it back, as you would with a loan. The downside? Until you buy that individual or equity firm out, they own a portion of your profits in perpetuity.

And not all equity is made the same. If your cousin or friend wants to go in with you, and they just want to provide cash to buy equipment, they can do that for a portion of your future earnings. On the other hand, an equity firm can guarantee your salary, but the return they expect is like taking a 58% loan on your business. Growth has do deliver, and when you take the money, your ultimate goal is to grow to the point of making a public offer. Of course, there are equity partners that are in between friends and relatives and the venture set.

Peer Networks

Crowdfund equity capital with our proven strategy. We’ll position you and set you up for success on the right platform for your funding goals.

Long Term Mid-Scale

Find active or passive co-owners in your business ready to invest for the long term. These equity investors are unlikely to sell and unlikely to push for extreme growth.

Venture Capital

When you are ready to compete, Reagan Commercial Capital positions you for equity funding from today’s leading venture capitalists. Get ready to grow!

Commercial Real Estate Development

When developers need to get big deals moving managing risk while gaining access through a well-structured capital stack becomes the deal maker. Let us bring our experience in development and construction financing to your next big project.

Investment Joint Venture Capital and Equity Funding

No matter what stage of the capital stack you are trying to fill, Reagan Commercial Capital can source funds. From preferred debt to common equity partnerships, our network of investors and lenders are ready to review your business deal.

Advantages of Equity Investors

01

Access capital without fixed interest payments

02

Find like-minded individuals ready to back your business

03

Gain insights from peers with knowledge and skin in the game

04

Grow and even take the right business public

FAQ

When is equity financing a poor fit?
For business owners that don’t want to grant ownership, influence, or partial control to another party, equity financing will curtail some of the freedom they have in running their business the way they want. In this instance, debt financing may be a better option because repayment returns the business to free and clear.
Are equity investors a good type of financing?
Adding owners who are invested in the growth of your business, especially when they have insight and experience that can add value and credibility to your organization can be invaluable for many founders. At the same time, it’s important to recognize that these owners claim a portion of revenue each year and that buying them out will become more challenging as the value of the business increases.
Where do I find the right equity investors for my business?
Equity investment starts with a comprehensive business assessment and valuation. Then we target the type of investor you are seeking. We help package and present your business and facilitate the process to close. That allows you to stay focused on operations rather than chasing money. It also provides you a second set of experienced eyes on the deal.