What is equity capital?
In the case of equity investments, a company receives additional equity capital from companies or private individuals. For these, an investment is worthwhile if they can sell shares in the company at a profit after a while. You can find out what forms of participation there are here:Beteiligungskapital
Advantages of equity capital
The advantage of equity capital is not only that no collateral has to be provided. In addition, a higher equity ratio makes it easier to obtain loans from banks. It is not uncommon for the providers of equity capital to support (young) companies with their entrepreneurial know-how. They do not interfere in the day-to-day business of the company. However, they do exert strategic influence, usually through their participation in the advisory board or supervisory board of the company. After all, companies and investors have a common goal: to increase the value of the company.
Investment offers
There are different providers of capital, depending on the industry, return expectations and capital requirements.
Finding equity investors
Start-up projects as well as entrepreneurs must convince with the prospects of success of their project. TheBundesverband Deutscher Kapitalbeteiligungsgesellschaften (German Private Equity and Venture Capital Association), for example, offers a targeted search within its members and an online investment inquiry on its website. Young companies looking for a business angel can find helpful information on the website of theBusiness Angels Deutschland e.V.. Particularly in the high-tech sector, young entrepreneurs are repeatedly given the opportunity to present their projects to potential investors.
Mittelständische Beteiligungsgesellschaft Berlin-Brandenburg
TheMittelständische Beteiligungsgesellschaft Berlin-Brandenburg GmbH (MBG) is also an option for investments. Shareholders are chambers, associations and banks, which have no influence on day-to-day management. As a neutral investor, the MBG participates across sectors and on a long-term basis, usually in the form of a silent partnership.