Entrepreneurship 101: Debt or equity?
Most start-ups require an infusion of cash to successfully launch – capital that will have to come from sources other than the entrepreneurs starting the company. These entrepreneurs are faced with the choice of borrowing (debt) or accepting investment (equity). Debt requires an asset backing the loan – perhaps the inventor’s house? Equity, while it doesn’t have to be repaid, implies taking on a partner who may not be a silent one!
Question of the week:
I’m interested in the experience of entrepreneurs out there: which route would you recommend — debt or equity — and why?
More information:
- Webcast
- Class summary: Wednesday, November 15
- ENT101 Facebook Group
- Tony Redpath’s presentation: Different Forms of Entrepreneurship
As the VP of Partner Programs at MaRS, Tony ensures that our external and internal programs work together. Tony also advises entrepreneurs and high growth companies, particularly in environmental, advanced materials and manufacturing markets, with a special emphasis on mentoring and development of entrepreneurs.